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 the mail or another delivery service. Section 8 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 6 of this bill. Section 9 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 10 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. Section 11 of this bill excludes remote retail sellers of cigars and pipe tobacco from obtaining the credit provided under existing law for the cost of collecting taxes on tobacco products. Sections 2, 3 and 12-19 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, including, without limitation, imposing the same fees for a license, which are set forth in section 18, and imposing the same bonding requirements, which are set forth in section 19. 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 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.

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
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