Bill Summary – FastDemocracy

General Assembly                        Raised Bill No. 5464
       February Session, 2020                 LCO No. 2355
     Referred to Committee on            FINANCE, REVENUE AND
     BONDING
     Introduced by:
       (FIN)
 AN ACT CONCERNING THE TAX TREATMENT OF TOBACCO
 PRODUCTS THAT ARE EXPORTED FROM THE STATE.
 Be it enacted by the Senate and House of Representatives in General
 Assembly convened:
1         Section 1. Section 12-330c of the general statutes is repealed and the
2      following is substituted in lieu thereof (Effective October 1, 2020):
3         (a) [(1)] A tax is imposed on all untaxed tobacco products held in this
4      state by any person [. Except as otherwise provided in subdivisions (2)
5      and (3) of this subsection, the tax shall be imposed] at the rate of fifty
6      per cent of the wholesale sales price of such products, [.] except that:
7        [(2) Notwithstanding the provisions of subdivision (1) of this
8      subsection, in] (1) In the case of cigars, the tax shall not exceed fifty cents
9      per cigar; [.] and
10       [(3)] (2) The tax shall be imposed on snuff tobacco products, on the
11     net weight as listed by the manufacturer, as follows: Three dollars per
12     ounce of snuff and a proportionate tax at the like rate on all fractional
13     parts of an ounce of snuff.
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14      (b) (1) Except as provided in subdivision (2) of this subsection, such
15   tax shall be imposed on the distributor or the unclassified importer at
16   the time the tobacco product is manufactured, purchased, imported,
17   received or acquired in this state.
18      (2) [Cigars] Tobacco products owned by a distributor, that are located
19   on the premises of a person who performs fulfillment services in this
20   state for such distributor or are located on the premises of a warehouse
21   in this state that is owned or leased by the distributor, and (A) are
22   exported from this state shall not be subject to the tax imposed by this
23   chapter, or (B) are shipped, delivered or otherwise transferred to a
24   Connecticut address shall be subject to the tax imposed by this chapter
25   and such tax shall be imposed on the date of such shipment, delivery or
26   transfer and paid with, and reported by such distributor on, the return
27   prescribed under section 12-330d that corresponds to the month such
28   shipment, delivery or transfer occurred. For purposes of this
29   subdivision, "fulfillment services" means services that are performed by
30   a person on the premises of such person on behalf of a distributor and
31   that involve the receipt of orders from such distributor or an agent
32   thereof, which orders are to be filled by the person from an inventory of
33   [cigars] tobacco products that are offered for sale by such distributor,
34   and the shipment of such orders to customers of such distributor.
35      (3) The commissioner may require the person who performs
36   fulfillment services to file a quarterly informational return with the
37   commissioner with respect to [cigars] tobacco products located on the
38   premises of such person, containing such information as the
39   commissioner may prescribe.
40     (c) Such tax shall not be imposed on any tobacco products that (1) are
41   exported from this state, or (2) are not subject to taxation by this state
42   pursuant to any laws of the United States.
43     (d) Any tax imposed under this chapter shall be reduced by fifty per
44   cent for any product the Secretary of the United States Department of
45   Health and Human Services determines to be a modified risk tobacco
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                                                                              Raised Bill No.        5464
46   product pursuant to 21 USC 387k, as amended from time to time.
      This act shall take effect as follows and shall amend the following
      sections:
      Section 1           October 1, 2020                        12-330c
     Statement of Purpose:
     To specify that tobacco products owned by a distributor, that are located
     on the premises of a warehouse in the state and exported from the state,
     are not subject to the tobacco products tax at the time the tobacco
     products are manufactured, purchased, imported, received or acquired
     in the state.
     [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
     that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
     underlined.]
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Statutes affected: 
Raised Bill: 12-330c