North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2281 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	25.0684.02000
2	2	Sixty-ninth
3	3	Legislative Assembly
4	4	of North Dakota
5	5	Introduced by
6	6	Senators Hogan, Cleary
7	7	Representatives Foss, Nelson
8	8	A BILL for an Act to create and enact five new sections to chapter 57-36 of the North Dakota
9	9	Century Code, relating to a tax on cigars, other tobacco products, alternative tobacco products,
10	10	electronic smoking devices, and electronic smoking device substances and a tobacco tax
11	11	distribution fund; to amend and reenact section 57-36-01, subsection 1 of section 57-36-31, and
12	12	section 57-36-32 of the North Dakota Century Code, relating to the definition of alternative
13	13	tobacco products, transfer and allocation of tobacco products tax revenue and tax on cigarettes;
14	14	to provide a penalty; to provide a continuing appropriation; and to provide an effective date.
15	15	BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
16	16	SECTION 1. AMENDMENT. Section 57-36-01 of the North Dakota Century Code is
17	17	amended and reenacted as follows:
18	18	57-36-01. Definitions.
19	19	As used in this chapter, unless the context or subject matter otherwise requires:
20	20	1."Alternative tobacco product" means a noncombustible product containing nicotine or
21	21	synthetic nicotine, intended for human consumption by chewing, absorbing, dissolving,
22	22	or any other means.
23	23	a.The term includes:
24	24	(1)Nicotine gels;
25	25	(2)Nicotine pouches; and
26	26	(3)Dissolvable tobacco products.
27	27	b.The term does not include products approved by the United States food and drug
28	28	administration for nicotine replacement therapy.
29	29	2."Chewing tobacco" means any leaf tobacco that is intended to be placed in the mouth.
30	30	2.3."Cigar" means any roll of tobacco wrapped in tobacco.
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32	32	SENATE BILL NO. 2281
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58	58	3.4."Cigarette" means any roll for smoking made wholly or in part of tobacco or processed
59	59	tobacco and encased in any material except tobacco. The term also means any
60	60	product of a cigarette-making machine.
61	61	4.5."Cigarette-making machine" means a machine used for commercial purposes to
62	62	process tobacco into a roll or tube, formed or made from any material other than
63	63	tobacco, at a production rate of more than five rolls or tubes per minute.
64	64	5.6."Consumer" means any person who has title to or possession of cigarettes, cigars,
65	65	pipe tobacco, electronic smoking devices, or other tobacco products in storage, for
66	66	use or other consumption in this state.
67	67	6.7."Dealer" includes a retailer and any person other than a distributor who is engaged in
68	68	the business of selling cigarettes, cigarette papers, cigars, pipe tobacco, electronic
69	69	smoking devices, or other tobacco products, or any product of a cigarette-making
70	70	machine.
71	71	7.8."Distributor" includes any person engaged in the business of producing or
72	72	manufacturing cigarettes, cigarette papers, cigars, pipe tobacco, electronic smoking
73	73	devices, or other tobacco products, or importing into this state cigarettes, cigarette
74	74	papers, cigars, pipe tobacco, electronic smoking devices, or other tobacco products,
75	75	for the purpose of distribution and sale thereof to dealers and retailers. The term also
76	76	includes a dealer that fabricates, repackages, compounds, or mixes electronic
77	77	smoking devices for purposes of sale to a consumer.
78	78	8.9."Electronic smoking device" means a device that may be used to deliver an
79	79	aerosolized, vaporized, or heated substance containingthat may contain nicotine,
80	80	regardless of whether the nicotine is natural or synthetic, to an individual inhaling from
81	81	the device, and includes an electronic cigarette, e-cigar, e-pipe, vape pen, and
82	82	e-hookah. The term includes any substance containing nicotine, regardless of whether
83	83	the nicotine is natural or synthetic, that may be aerosolized, vaporized, or heated by
84	84	the device, regardless of whether the device is sold separately. The term does not
85	85	include:
86	86	a.A cigarette as defined in section 51-25-01;
87	87	b.A cigarette as defined in this section;
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120	120	c.A drug, device, or combination product, as those terms are defined in the federal
121	121	Food, Drug, and Cosmetic Act [52 Stat. 1040; 21 U.S.C. 301 et seq.], approved
122	122	for sale by the United States food and drug administration; or
123	123	d.A battery or battery charger when sold separately.
124	124	9.10."Electronic smoking device substance" means any substance for use in an electronic
125	125	smoking device that may be aerosolized, vaporized, or heated. The term includes
126	126	substances that contain natural or synthetic nicotine.
127	127	11."Licensed dealer" means a dealer licensed under the provisions of this chapter.
128	128	10.12."Licensed distributor" means a distributor licensed under the provisions of this chapter.
129	129	11.13."Other tobacco products" means snuff and chewing tobacco.
130	130	12.14."Outlet" means each place of business from which tobacco products are sold.
131	131	13.15."Person" means any individual, firm, fiduciary, partnership, corporation, limited liability
132	132	company, trust, or association however formed.
133	133	14.16."Pipe tobacco" means any processed tobacco that, because of its appearance, type,
134	134	packaging, or labeling, is suitable for use and likely to be offered to, or purchased by,
135	135	consumers as tobacco to be smoked in a pipe.
136	136	15.17."Place of business" means a place where tobacco products are sold or where tobacco
137	137	products are manufactured, fabricated, stored, or kept for purposes of sale or
138	138	consumption.
139	139	16.18."Retailer" means a person engaged in the business of selling cigarettes, cigars, pipe
140	140	tobacco, electronic smoking devices, or other tobacco products to consumers.
141	141	17.19."Sale" or "sell" applies to gifts, exchanges, and barter.
142	142	18.20."Snuff" means any finely cut, ground, or powdered tobacco that is intended to be
143	143	placed in the mouth or nose.
144	144	19.21."Storage" means any keeping or retention of cigarettes, cigars, pipe tobacco,
145	145	electronic smoking devices, or other tobacco products for use or consumption in this
146	146	state.
147	147	20.22."Use" means the exercise of any right or power incidental to the ownership or
148	148	possession of cigarettes, cigars, pipe tobacco, electronic smoking devices, or other
149	149	tobacco products.
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181	181	Legislative Assembly
182	182	SECTION 2. AMENDMENT. Subsection 1 of section 57-36-31 of the North Dakota Century
183	183	Code is amended and reenacted as follows:
184	184	1.All moneys received by the tax commissioner under the provisions of this chapter must
185	185	be transmitted to the state treasurer at the end of each month and deposited in the
186	186	state treasury to the credit of the general fund, except as hereinafterotherwise
187	187	provided in this section, section 57 - 36 - 32, and sections 4, 5, 6, and 7 of this Act .
188	188	SECTION 3. AMENDMENT. Section 57-36-32 of the North Dakota Century Code is
189	189	amended and reenacted as follows:
190	190	57-36-32. Separate and additional taxtaxes on the sale of cigarettes - Collection -
191	191	Allocation of revenue - Tax avoidance prohibited.
192	192	1.There is hereby levied and assessed and there shallmust be collected by the state tax
193	193	commissioner and paid to the state treasurer, upon allon cigarettes sold in this state,
194	194	an additional tax, separate and apart from all other taxes, of seventeen mills on each
195	195	cigarette, to be collected as existing taxes on cigarettes sold are, or hereafter may be,
196	196	collected, by use of appropriate stamps and under similar accounting procedures. NoA
197	197	person, firm, corporation, or limited liability company shallmay not transport or, bring,
198	198	or cause to be shipped into thethis state of North Dakota any cigarettes as provided
199	199	hereinin this section, other than for delivery to wholesalers in this state, without first
200	200	paying the tax thereonunder this subsection to the state tax commissioner. All of the
201	201	moneys collected by theThe state treasurer shall transfer the funds collected under
202	202	this section shall be creditedsubsection to the state general fund.
203	203	2.There is levied and assessed and must be collected by the state tax commissioner
204	204	and paid to the state treasurer, on cigarettes sold in this state, an additional tax,
205	205	separate from all other taxes, of twelve and one - half mills on each cigarette, to be
206	206	collected as existing taxes on cigarettes sold are, or may be, collected, by use of
207	207	appropriate stamps and under similar accounting procedures. A person, firm,
208	208	corporation, or limited liability company may not transport, bring, or cause to be
209	209	shipped into this state any cigarettes as provided under this subsection, other than for
210	210	delivery to wholesalers in this state, without first paying the tax under this subsection
211	211	to the state tax commissioner. The state treasurer shall transfer the funds collected
212	212	under this subsection to the tobacco tax distribution fund.
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245	245	Legislative Assembly
246	246	SECTION 4. A new section to chapter 57-36 of the North Dakota Century Code is created
247	247	and enacted as follows:
248	248	Separate and additional tax on the sale of cigars - Collection - Allocation of revenue -
249	249	Avoidance prohibited.
250	250	There is levied and assessed and must be collected by the state tax commissioner and paid
251	251	to the state treasurer, on cigars sold in the state, an additional tax, separate from all other taxes,
252	252	of thirty - two percent of the wholesale purchase price at which the cigars are purchased by
253	253	distributors, to be collected as existing taxes on cigars sold are collected. For purposes of this
254	254	section, "wholesale purchase price" means the established price for which a manufacturer sells
255	255	cigars to a distributor exclusive of any discount or other reduction. The state treasurer shall
256	256	transfer the funds collected under this section to the tobacco tax distribution fund.
257	257	SECTION 5. A new section to chapter 57-36 of the North Dakota Century Code is created
258	258	and enacted as follows:
259	259	Separate and additional tax on other tobacco products - Collection - Allocation of
260	260	revenue - Avoidance prohibited.
261	261	There is levied and assessed and must be collected by the state tax commissioner and paid
262	262	to the state treasurer, on other tobacco products sold in the state, an additional tax, separate
263	263	from all other taxes, of twenty-eight percent of the wholesale purchase price at which other
264	264	tobacco products are purchased by distributors. For the purposes of this section, "wholesale
265	265	purchase price" means the established price for which a manufacturer sells other tobacco
266	266	products to a distributor exclusive of any discount or other reduction. The state treasurer shall
267	267	transfer the funds collected under this section to the tobacco tax distribution fund.
268	268	SECTION 6. A new section to chapter 57-36 of the North Dakota Century Code is created
269	269	and enacted as follows:
270	270	Separate and additional tax on alternative tobacco products - Collection - Allocation
271	271	of revenue - Avoidance prohibited.
272	272	There is levied and assessed and must be collected by the state tax commissioner and paid
273	273	to the state treasurer, on alternative tobacco products sold in the state, an additional tax,
274	274	separate from all other taxes, of twenty-eight percent of the wholesale purchase price at which
275	275	alternative tobacco products are purchased by distributors. For the purposes of this section,
276	276	"wholesale purchase price" means the established price for which a manufacturer sells an
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309	309	Legislative Assembly
310	310	alternative tobacco product to a distributor exclusive of any discount or other reduction. The
311	311	state treasurer shall transfer the funds collected under this section to the tobacco tax
312	312	distribution fund.
313	313	SECTION 7. A new section to chapter 57-36 of the North Dakota Century Code is created
314	314	and enacted as follows:
315	315	Separate and additional tax on electronic smoking devices and electronic smoking
316	316	device substances - Collection - Allocation of revenue - Avoidance prohibited.
317	317	There is levied and assessed and must be collected by the state tax commissioner and paid
318	318	to the state treasurer, on electronic smoking devices and substances sold in the state for use in
319	319	electronic smoking devices, an additional tax, separate from all other taxes, of twenty-eight
320	320	percent of the wholesale purchase price at which electronic smoking devices and electronic
321	321	smoking device substances are purchased by distributors. For the purposes of this section,
322	322	"wholesale purchase price" means the established price for which a manufacturer sells an
323	323	electronic smoking device or electronic smoking device substance to a distributor exclusive of
324	324	any discount or other reduction. The state treasurer shall transfer the funds collected under this
325	325	section to the tobacco tax distribution fund.
326	326	SECTION 8. A new section to chapter 57-36 of the North Dakota Century Code is created
327	327	and enacted as follows:
328	328	Tobacco tax distribution fund - Continuing appropriation.
329	329	The tobacco tax distribution fund is created as a special fund in the state treasury into which
330	330	must be deposited any portion of tobacco tax collections designated by law to be deposited in
331	331	the fund. All moneys in the fund are appropriated on a continuing basis to the department of
332	332	health and human services for the purposes described in this section. Each month, the
333	333	department shall distribute one - half of the moneys in the fund as grants to local public health
334	334	units and the remaining moneys in the fund to organizations providing 988 crisis hotline
335	335	services.
336	336	SECTION 9. EFFECTIVE DATE. Sections 3, 4, 5, 6, and 7 of this Act are effective for
337	337	taxable events occurring after June 30, 2025.
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