Existing law imposes a tax on the receipt, purchase or sale in this State of cigarettes and other tobacco products, including, without limitation, cigars and pipe tobacco. (NRS 370.0318, 370.165, 370.350, 370.440, 370.450) Under existing law, the tax on tobacco products, other than cigarettes, is required to be paid by the wholesale dealer who purchased the products from the manufacturer and who distributes the products to a retail dealer in this State. If any tobacco products, other than cigarettes, are authorized by law to be sold directly to a consumer in this State by a person located outside this State, the tax is imposed on the person making the sale and the tax is based on the established price for which the products are sold to the consumer. (NRS 370.440, 370.450) This bill enacts provisions to provide for the taxation of the remote sale of cigars and pipe tobacco by persons who make sales of cigars and pipe tobacco through any means by which the cigars or pipe tobacco are delivered to the consumer through remote sales. Sections 2 and 3 of this bill, respectively, define the sales that constitute a remote retail sale and the sellers who are remote retail sellers for the purposes of taxing such remote retail sales of cigars and pipe tobacco. Section 3.3 of this bill requires the tax for a remote sale of cigars or pipe tobacco to be based on the actual cost of the cigars or pipe tobacco to the remote retail seller, as defined in section 1.3 of this bill. Under section 3.3, a remote retail seller is subject to this tax only if the remote retail seller meets certain thresholds for the retail sale of cigars or pipe tobacco to consumers in this State. Section 3.4 of this bill provides for the filing of a monthly report of the sales of cigars and pipe tobacco by a remote retail seller in a manner similar to the monthly report for a wholesale dealer of such products, and section 3.5 of this bill imposes recordkeeping requirements on a remote retail seller of cigars and pipe tobacco that are similar to the recordkeeping requirements for a wholesale dealer of such products. Sections 3.6-3.9 of this bill provide for the licensing of remote retail sellers of cigars and pipe tobacco in the same manner as wholesale dealers of such products. Specifically: (1) section 3.65 prohibits the issuance, maintenance or renewal of a license if the applicant or licensee is not registered to collect and remit sales and use tax, is delinquent in the payment of sales and use tax or the tax imposed by section 3.3, or does not comply with certain age-verification requirements; (2) section 3.8 imposes the same fees for a license that are imposed on similar tobacco licensees; and (3) section 3.9 imposes the same bonding requirements that are imposed on similar tobacco licensees. Section 7 of this bill clarifies requirements for wholesale dealers of tobacco products, other than cigarettes, to maintain an inventory of such products by providing that such inventory must be maintained at each location in this State at which the wholesaler maintains a place of business. Section 12.5 of this bill makes a remote retail seller subject to the penalties that apply under existing law to delinquency in the payment of taxes on tobacco products. (NRS 370.523) Section 20 of this bill makes a conforming change to align with existing requirements for the use of an independent, third-party age verification service by remote retail sellers of certain tobacco products. Section 20.5 of this bill makes a conforming change to ensure premium cigars sold to a remote retail seller are taxed in the same manner as premium cigars sold by other retail sellers in this State. Section 20.7 of this bill makes an appropriation to the Department of Taxation for certain costs to implement the provisions of this bill.

Statutes affected:
As Introduced: 370.0318, 370.054, 370.440, 370.447, 370.450, 370.465, 370.480, 370.490, 370.531, 370.551, 370.567, 370.575, 370.583, 370.585, 370.587, 370.589, 202.24935
Reprint 1: 370.0318, 370.054, 370.440, 370.447, 370.465, 370.490, 370.551, 202.24935
Reprint 2: 370.0318, 370.054, 370.440, 370.447, 370.465, 370.490, 370.523, 370.551, 202.24935
As Enrolled: 370.0318, 370.054, 370.440, 370.447, 370.465, 370.490, 370.523, 370.551, 202.24935
BDR: 370.0318, 370.054, 370.440, 370.447, 370.450, 370.465, 370.480, 370.490, 370.531, 370.551, 370.567, 370.575, 370.583, 370.585, 370.587, 370.589, 202.24935