Authorizes the imposition of a civil penalty by the Department of Taxation for certain violations relating to contraband tobacco products. (BDR 32-1068)
Impact
One of the bill's key impacts is its reinforcement of state laws regulating the sale and possession of contraband tobacco products. By imposing civil penalties, AB455 seeks to hold offenders accountable and ensure a more robust enforcement mechanism. The penalties collected will be allocated to a separate account within the State General Fund specifically dedicated to tobacco enforcement, thus providing the Department of Taxation with necessary resources to effectively carry out its oversight obligations.
Summary
Assembly Bill No. 455 aims to strengthen the state’s tobacco enforcement by authorizing the Nevada Department of Taxation to impose civil penalties for violations relating to contraband tobacco products. The bill amends existing statutes to create a framework that allows for the imposition of fines up to $10,000 for entities involved in handling counterfeit tobacco stamps or products that are not compliant with state and federal regulations. This new structure is intended to deter illegal activities surrounding tobacco distribution within the state.
Contention
Notable points of contention surrounding AB455 include concerns from various stakeholders about the potential implications for legitimate tobacco businesses. Critics argue that the imposition of high penalties could unintentionally impact legal vendors who may inadvertently violate complex regulations. Furthermore, there are discussions about the adequacy of existing laws and whether harsher penalties truly address the root causes of contraband tobacco issues, with some stakeholders advocating instead for better educational outreach and compliance assistance.
Taxation: tobacco; excise tax on e-cigarettes and certain other tobacco products; create. Amends title & secs. 2, 3, 6, 7, 8, 11 & 12 of 1993 PA 327 (MCL 205.422 et seq.).
Increasing the required age to 21 to purchase or possess cigarettes and tobacco products including electronic cigarettes and establishing unlawful acts under the Kansas cigarette and tobacco products act and penalties for violations thereof.
An Act Concerning Increased Penalties For Certain Cigarette And Tobacco Tax Violations, A Continuing Education Option For Certain Embalmers Or Funeral Directors And The Imposition Of The Tobacco Products Tax On Cigars.
Cigarette and tobacco products; enforcement of tobacco tax laws; industry advisory committee; purchase of tobacco products; seizure of untaxed tobacco products; procedures. Effective date. Emergency.
Cigarette and tobacco products; enforcement of tobacco tax laws; industry advisory committee; purchase of tobacco products; seizure of untaxed tobacco products; procedures. Effective date. Emergency.
In tobacco products tax, further providing for definitions, for incidence and rate of tax, for licensing of wholesalers and for licensing of retailers and providing for electronic nicotine delivery system directory.