Under existing law, there is imposed upon the receipt, purchase or sale of other tobacco products in this State a tax of 30 percent of the wholesale price of those products. (NRS 370.450) Section 1 of this bill specifically limits the tax imposed upon the receipt, purchase and sale of other tobacco products that are premium cigars to not more than 50 cents or less than 30 cents for each premium cigar. Section 1 defines “premium cigar” as a cigar that is rolled by hand, has a wrapper made of whole tobacco leaves and does not have a filter or mouthpiece. Existing law requires the Department of Taxation to allow a credit of 30 percent of the wholesale price, less a discount of 0.25 percent for the services rendered in collecting the tax, for other tobacco products on which the tax has been paid and that may no longer be sold. (NRS 370.490) Section 1.5 of this bill makes a conforming change in response to the change in the rate of the tax for premium cigars to provide that the amount of this credit is the amount of the tax paid. Section 2 of this bill provides that the amendatory provisions of this bill expire by limitation on June 30, 2027.

Statutes affected:
As Introduced: 370.450
Reprint 1: 370.450, 370.490
As Enrolled: 370.450, 370.490
BDR: 370.450