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General Assembly Committee Bill No. 6655
January Session, 2019
LCO No. 7155
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING TH E TAX TREATMENT OF TOBACCO
PRODUCTS THAT ARE EX PORTED FROM THE STAT E.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 12-330c of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2019): 2
(a) [(1)] A tax is imposed on all untaxed tobacco products held in 3
this state by any person [. Except as otherwise provided in 4
subdivisions (2) and (3) of this subsection, the tax shall be imposed] at 5
the rate of fifty per cent of the wholesale sales price of such products, 6
[.] 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 9
cents 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. 14
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(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 19
located on the premises of a person who performs fulfillment services 20
in this state for such distributor or on the premises of a warehouse in 21
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 26
or transfer and paid with, and reported by such distributor on, the 27
return prescribed under section 12-330d that corresponds to the month 28
such shipment, delivery or transfer occurred. For purposes of this 29
subdivision, "fulfillment services" means services that are performed 30
by a person on the premises of such person on behalf of a distributor 31
and 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 33
of [cigars] tobacco products that are offered for sale by such 34
distributor, and the shipment of such orders to customers of such 35
distributor. 36
(3) The commissioner may require the person who performs 37
fulfillment services to file a quarterly informational return with the 38
commissioner with respect to [cigars] tobacco products located on the 39
premises of such person, containing such information as the 40
commissioner may prescribe. 41
(c) Such tax shall not be imposed on any tobacco products that (1) 42
are exported from this state, or (2) are not subject to taxation by this 43
state pursuant to any laws of the United States. 44
(d) Any tax imposed under this chapter shall be reduced by fifty per 45
cent for any product the Secretary of the United States Department of 46
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Health and Human Services determines to be a modified risk tobacco 47
product pursuant to 21 USC 387k, as amended from time to time. 48
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2019 12-330c
Statement of Purpose:
To specify that tobacco products owned by a distributor, that are
located on the premises of a warehouse in this state and exported from
this state, are not subject to the tobacco products tax at the time the
tobacco product is manufactured, purchased, imported, received or
acquired in this 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.]
Co-Sponsors: REP. KLARIDES, 114th Dist.
H.B. 6655