Existing law imposes a tax upon the receipt, purchase or sale of other tobacco products in this State at a rate of 30 percent of the wholesale price of those products. (NRS 370.450) By definition, other tobacco products include tobacco of any description, any vapor product, any alternative nicotine product or any product made from tobacco, other than cigarettes. (NRS 370.0318) Existing law requires the Department of Taxation to deposit the proceeds of the tax on other tobacco products with the State Treasurer for credit to the Account for the Tax on Products Made From Tobacco, Other Than Cigarettes, in the State General Fund. (NRS 370.500) This bill requires the Department of Taxation to deposit a portion of the proceeds of the tax on other tobacco products with the State Treasurer for credit to the appropriate account of the Division of Public and Behavioral Health of the Department of Health and Human Services, in an amount: (1) not to exceed $1,600,000 in Fiscal Year 2023-2024; and (2) that increases in each subsequent fiscal year at a rate of either 2 percent or a greater percentage derived from the Consumer Price Index for all Urban Consumers, West Region (All Items), as published by the United States Department of Labor. The Department of Taxation is required to deposit all remaining proceeds from the tax for the fiscal year with the State Treasurer for credit to the Account for the Tax on Products Made From Tobacco, Other Than Cigarettes, in the State General Fund.

Statutes affected:
As Introduced: 370.500
BDR: 370.500