Connecticut House Bill HB05428

Connecticut 2018 Regular Session

• Introduced: 3/6/18
• Refer: 3/6/18

Caption

An Act Concerning Imposition Of The Tobacco Products Tax.

Impact

One notable change introduced by HB 05428 is the clarification of tax responsibilities for distributors and importers. It stipulates that tax is imposed at the time tobacco products are manufactured, purchased, or imported in the state, which ensures that revenue is collected at multiple stages of the tobacco supply chain. Additionally, the bill exempts certain exports and products not subject to federal tax, which aligns state regulations with federal standards, potentially simplifying compliance for tobacco distributors operating in both markets.

Summary

House Bill 05428 focuses on the imposition of taxes on tobacco products in the state. The bill establishes a tax rate of 50% on the wholesale sales price of untaxed tobacco products held within the state, with specific provisions for different types of tobacco products. For example, the maximum tax on cigars is capped at fifty cents each, and for snuff tobacco, the charge is set at $3 per ounce. These measures aim to regulate the distribution and sale of tobacco products more effectively within state lines and ensure that such products contribute to state revenues.

Contention

However, there may be some contention surrounding this bill, particularly concerning the definition and treatment of fulfillment services. The bill provides that a distributor owning property on fulfillment service premises will not be considered a distributor for cigars exported from the state. This aspect could lead to debates over how fulfillment service definitions may vary and how they could impact tax liabilities and compliance for those engaged in the distribution of tobacco products. Furthermore, critics may argue about the adequacy of the tax burden imposed on certain product categories and its effect on consumer prices and public health initiatives.