North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2281

Introduced
1/20/25  
Refer
1/20/25  
Report Pass
2/18/25  
Engrossed
2/25/25  
Refer
3/7/25  

Caption

The definition of alternative tobacco products, transfer and allocation of tobacco products tax revenue and tax on cigarettes; to provide a penalty; to provide a continuing appropriation; and to provide an effective date.

Impact

The proposed changes in SB2281 are expected to impact state laws significantly, particularly those governing tobacco taxation and public health funding. By establishing a dedicated Tobacco Tax Distribution Fund, the bill earmarks the tax revenue collected for crucial public health initiatives. It mandates that half of the revenue generated be provided as grants to local public health units, while the remainder is directed to organizations that provide crisis hotline services. This reallocation of resources is anticipated to bolster state efforts in promoting public health and managing tobacco consumption in North Dakota.

Summary

Senate Bill 2281 introduces a significant restructuring of tobacco taxation in North Dakota. The bill aims to implement an additional tax on various tobacco products, including cigars, other tobacco products, alternative tobacco products, and electronic smoking devices. Specifically, it proposes a tax rate of twenty-eight percent on the wholesale purchase price of electronic smoking devices and related substances, as well as similar rates for other tobacco categories. The bill also seeks to enhance definitions within the North Dakota Century Code related to these products, aiming for clearer guidelines regarding compliance and regulation.

Contention

Although proponents argue that the increase in taxes will deter tobacco use and support public health measures, there is a potential point of contention regarding the economic implications for businesses involved in selling these products. Critics may express concerns about the burden placed on retailers and the risk of increased illicit market activities due to higher prices resulting from new taxes. Moreover, there may be differing opinions on definitions of 'alternative tobacco products' as established in the bill and how they might affect the market dynamics for such products and electronic smoking devices.

Companion Bills

No companion bills found.

Previously Filed As

ND HB1357

Remote sales of tobacco products; and to provide a penalty.

ND HB1412

Licensing requirements and the sale of electronic smoking devices; and to provide a penalty.

ND HB1274

Definition of the term "units sold" used to determine escrow to be deposited by a nonparticipating manufacturer, and the regulation of tobacco product manufacturers, distributors, and the lawful sale of cigarettes; to provide a penalty; and to declare an emergency.

ND HB1202

Definitions relating to medical marijuana products; and to provide a contingent effective date.

ND SB2334

A sales tax exemption for a fertilizer plant and allocation of sales tax revenue; to provide a continuing appropriation; to provide for a legislative management report; and to provide an expiration date.

ND HB1012

The flexible transportation fund, motor vehicle excise tax allocations, an appropriation for township roadway funding, and the appropriation of bond proceeds for transportation projects; to provide an exemption; to provide a report; to provide for a legislative management study; to provide an effective date; and to declare an emergency.

ND SB2162

Oil and gas gross production tax allocations to counties.

ND HB1057

Statements of full consideration, notice of township and city equalization meetings, the definition of snuff, service of notice for sales and use tax purposes, and notice of the gas base rate adjustment and gas production tax rate; and to provide an effective date.

ND HB1282

A sales and use tax exemption for feminine hygiene products; and to provide an effective date.

ND HB1399

Oil and gas tax revenue hedging; to provide an appropriation; to provide a continuing appropriation; to provide for a transfer; to provide a statement of legislative intent; and to declare an emergency.

Similar Bills

UT SB0263

Electronic Cigarette and Other Nicotine Product Tax Amendments

MS SB2139

Tobacco tax; define tobacco products to include electronic smoking devices for purposes of 15% excise tax.

MS SB2015

Tobacco tax; define tobacco products to include electronic smoking devices for purposes of 15% excise tax.

MS SB2062

Tobacco tax; define tobacco products to include electronic smoking devices for purposes of 15% excise tax.

MS SB2211

Tobacco tax; define tobacco products to include electronic smoking devices for purposes of 15% excise tax.

UT HB0460

Settlement Fund Amendments

IL HB3606

TOBACCO-ELECTRONIC CIGARETTE

IL SB2338

TOBACCO-ELECTRONIC CIGARETTE