Connecticut 2019 Regular Session

Connecticut House Bill HB06655 Compare Versions

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Version 2 (New)

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7	5		General Assembly Committee Bill No. 6655
8	6		January Session, 2019
9	7		LCO No. 7155
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12	10		Referred to Committee on FINANCE, REVENUE AND
13	11		BONDING
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15	13
16	14		Introduced by:
17	15		(FIN)
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21	19		AN ACT CONCERNING TH E TAX TREATMENT OF TOBACCO
22	20		PRODUCTS THAT ARE EX PORTED FROM THE STAT E.
23	21		Be it enacted by the Senate and House of Representatives in General
24	22		Assembly convened:
25	23
26	24		Section 1. Section 12-330c of the general statutes is repealed and the 1
27	25		following is substituted in lieu thereof (Effective July 1, 2019): 2
28	26		(a) [(1)] A tax is imposed on all untaxed tobacco products held in 3
29	27		this state by any person [. Except as otherwise provided in 4
30	28		subdivisions (2) and (3) of this subsection, the tax shall be imposed] at 5
31	29		the rate of fifty per cent of the wholesale sales price of such products, 6
32	30		[.] except that: 7
33	31		[(2) Notwithstanding the provisions of subdivision (1) of this 8
34	32		subsection, in] (1) In the case of cigars, the tax shall not exceed fifty 9
35	33		cents per cigar; [.] and 10
36	34		[(3)] (2) The tax shall be imposed on snuff tobacco products, on the 11
37	35		net weight as listed by the manufacturer, as follows: Three dollars per 12
38		-	ounce of snuff and a proportionate tax at the like rate on all fractional 13 Committee Bill No. 6655
	36	+	ounce of snuff and a proportionate tax at the like rate on all fractional 13
	37	+	parts of an ounce of snuff. 14
	38	+	Committee Bill No. 6655
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45		-	parts of an ounce of snuff. 14
46	43		(b) (1) Except as provided in subdivision (2) of this subsection, such 15
47	44		tax shall be imposed on the distributor or the unclassified importer at 16
48	45		the time the tobacco product is manufactured, purchased, imported, 17
49	46		received or acquired in this state. 18
50	47		(2) [Cigars] Tobacco products owned by a distributor that are 19
51	48		located on the premises of a person who performs fulfillment services 20
52	49		in this state for such distributor or on the premises of a warehouse in 21
53	50		this state that is owned or leased by the distributor, and (A) are 22
54	51		exported from this state shall not be subject to the tax imposed by this 23
55	52		chapter, or (B) are shipped, delivered or otherwise transferred to a 24
56	53		Connecticut address shall be subject to the tax imposed by this chapter 25
57	54		and such tax shall be imposed on the date of such shipment, delivery 26
58	55		or transfer and paid with, and reported by such distributor on, the 27
59	56		return prescribed under section 12-330d that corresponds to the month 28
60	57		such shipment, delivery or transfer occurred. For purposes of this 29
61	58		subdivision, "fulfillment services" means services that are performed 30
62	59		by a person on the premises of such person on behalf of a distributor 31
63	60		and that involve the receipt of orders from such distributor or an agent 32
64	61		thereof, which orders are to be filled by the person from an inventory 33
65	62		of [cigars] tobacco products that are offered for sale by such 34
66	63		distributor, and the shipment of such orders to customers of such 35
67	64		distributor. 36
68	65		(3) The commissioner may require the person who performs 37
69	66		fulfillment services to file a quarterly informational return with the 38
70	67		commissioner with respect to [cigars] tobacco products located on the 39
71	68		premises of such person, containing such information as the 40
72	69		commissioner may prescribe. 41
73	70		(c) Such tax shall not be imposed on any tobacco products that (1) 42
74	71		are exported from this state, or (2) are not subject to taxation by this 43
75		-	state pursuant to any laws of the United States. 44 Committee Bill No. 6655
	72	+	state pursuant to any laws of the United States. 44
	73	+	(d) Any tax imposed under this chapter shall be reduced by fifty per 45
	74	+	cent for any product the Secretary of the United States Department of 46
	75	+	Committee Bill No. 6655
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82		-	(d) Any tax imposed under this chapter shall be reduced by fifty per 45
83		-	cent for any product the Secretary of the United States Department of 46
84	80		Health and Human Services determines to be a modified risk tobacco 47
85	81		product pursuant to 21 USC 387k, as amended from time to time. 48
86	82		This act shall take effect as follows and shall amend the following
87	83		sections:
88	84
89	85		Section 1 July 1, 2019 12-330c
90	86
91		-	FIN Joint Favorable
	87	+	Statement of Purpose:
	88	+	To specify that tobacco products owned by a distributor, that are
	89	+	located on the premises of a warehouse in this state and exported from
	90	+	this state, are not subject to the tobacco products tax at the time the
	91	+	tobacco product is manufactured, purchased, imported, received or
	92	+	acquired in this state.
92	93
	94	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	95	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	96	+	not underlined.]
	97	+
	98	+	Co-Sponsors: REP. KLARIDES, 114th Dist.
	99	+
	100	+	H.B. 6655