REQUIRES TWO-THIRDS MAJORITY VOTE
(§§ 8, 14, 18)
A.B. 471
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ASSEMBLY BILL NO. 471–ASSEMBLYMEMBER HIBBETTS
MARCH 17, 2025
____________
Referred to Committee on Revenue
SUMMARY—Revises provisions governing remote sales of certain
tobacco products. (BDR 32-846)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to taxation; revising provisions governing the
taxation of remote sales of cigars and pipe tobacco;
revising provisions governing the licensing of remote
retail sellers of cigars and pipe tobacco; and providing
other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law imposes a tax on the receipt, purchase or sale in this State of 1
cigarettes and other tobacco products, including, without limitation, cigars and pipe 2
tobacco. (NRS 370.0318, 370.165, 370.350, 370.440, 370.450) Under existing law, 3
the tax on tobacco products, other than cigarettes, is required to be paid by the 4
wholesale dealer who purchased the products from the manufacturer and who 5
distributes the products to a retail dealer in this State. If any tobacco products, other 6
than cigarettes, are authorized by law to be sold directly to a consumer in this State 7
by a person located outside this State, the tax is imposed on the person making the 8
sale and the tax is based on the established price for which the products are sold to 9
the consumer. (NRS 370.440, 370.450) 10
This bill enacts provisions to provide for the taxation of the remote sale of 11
cigars and pipe tobacco by persons who make sales of cigars and pipe tobacco 12
through any means by which the cigars or pipe tobacco are delivered to the 13
consumer through the mail or another delivery service. Section 8 of this bill 14
requires the tax for a remote sale of cigars or pipe tobacco to be based on the actual 15
cost of the cigars or pipe tobacco to the remote retail seller, as defined in section 6 16
of this bill. Section 9 of this bill provides for the filing of a monthly report of the 17
sales of cigars and pipe tobacco by a remote retail seller in a manner similar to the 18
monthly report for a wholesale dealer of such products, and section 10 of this bill 19
imposes recordkeeping requirements on a remote retail seller of cigars and pipe 20
tobacco that are similar to the recordkeeping requirements for a wholesale dealer of 21
such products. Section 11 of this bill excludes remote retail sellers of cigars and 22
pipe tobacco from obtaining the credit provided under existing law for the cost of 23
collecting taxes on tobacco products. Sections 2, 3 and 12-19 of this bill provide 24
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for the licensing of remote retail sellers of cigars and pipe tobacco in the same 25
manner as wholesale dealers of such products, including, without limitation, 26
imposing the same fees for a license, which are set forth in section 18, and 27
imposing the same bonding requirements, which are set forth in section 19. Section 28
7 of this bill clarifies requirements for wholesale dealers of tobacco products, other 29
than cigarettes, to maintain an inventory of such products by providing that such 30
inventory must be maintained at each location in this State at which the wholesaler 31
maintains a place of business. Section 20 of this bill makes a conforming change to 32
align with existing requirements for the use of an independent, third-party age 33
verification service by remote retail sellers of certain tobacco products. 34
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 370 of NRS is hereby amended by adding 1
thereto the provisions set forth as sections 2 and 3 of this act. 2
Sec. 2. “Remote retail sale” has the meaning ascribed to it in 3
NRS 370.440. 4
Sec. 3. “Remote retail seller” has the meaning ascribed to it 5
in NRS 370.440. 6
Sec. 4. NRS 370.0318 is hereby amended to read as follows: 7
370.0318 “Other tobacco product” [means any tobacco of any 8
description, any vapor product, any alternative nicotine product or 9
any product made from tobacco, other than cigarettes.] has the 10
meaning ascribed to it in NRS 370.440. 11
Sec. 5. NRS 370.054 is hereby amended to read as follows: 12
370.054 “Vapor product”: 13
1. Means any noncombustible product containing nicotine or 14
any other substance that employs a heating element, power source, 15
electronic circuit or other electronic, chemical or mechanical means, 16
regardless of the shape or size thereof, that can be used to produce 17
vapor from nicotine or any other substance in a solution , [or other 18
form,] the use or inhalation of which simulates smoking. 19
2. Includes, without limitation: 20
(a) An electronic cigarette, cigar, cigarillo, pipe, hookah, or vape 21
pen, or a similar product or device; and 22
(b) The components of such a product or device, whether or not 23
sold separately, including, without limitation, vapor cartridges or 24
other container of nicotine or any other substance in a solution or 25
other form that is intended to be used with or in an electronic 26
cigarette, cigar, cigarillo, pipe, hookah, or vape pen, or a similar 27
product or device, atomizers, cartomizers, digital displays, 28
clearomizers, tank systems, flavors, programmable software or other 29
similar products or devices. As used in this paragraph, “component” 30
means a product intended primarily or exclusively to be used with or 31
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in an electronic cigarette, cigar, cigarillo, pipe, hookah, or vape pen, 1
or a similar product or device. 2
3. Does not include any product: 3
(a) Regulated by the United States Food and Drug 4
Administration pursuant to subchapter V of the Federal Food, Drug, 5
and Cosmetic Act, 21 U.S.C. §§ 351 et seq. 6
(b) Subject to the excise tax on cannabis or cannabis products 7
pursuant to NRS 372A.200 to 372A.380, inclusive. 8
(c) Purchased by a person who holds a current, valid medical 9
cannabis establishment license pursuant to chapter 678B of NRS. 10
Sec. 6. NRS 370.440 is hereby amended to read as follows: 11
370.440 As used in NRS 370.440 to 370.503, inclusive, unless 12
the context otherwise requires: 13
1. “Actual cost” means the price paid by a remote retail seller 14
for a stock keeping unit assigned to cigars or pipe tobacco. 15
2. “Actual cost list” means the average of the actual cost for 16
the calendar year immediately preceding the calendar year in 17
which a remote retail sale is made by a remote retail seller. 18
3. “Alternative nicotine product” has the meaning ascribed to it 19
in NRS 370.008. 20
[2.] 4. “Cigar” means any roll of tobacco wrapped in leaf 21
tobacco or in any substance containing tobacco, other than a 22
cigarette. 23
5. “Other tobacco product” [has the meaning ascribed to it in 24
NRS 370.0318. 25
3.] means any tobacco of any description, any vapor product, 26
any alternative nicotine product or any product made from 27
tobacco, other than cigarettes. 28
6. “Pipe tobacco” means any tobacco which, because of its 29
appearance, type, packaging or labeling, is suitable for use and 30
likely to be offered to, or purchased by, ultimate consumers as 31
tobacco to be smoked in a pipe. 32
7. “Remote retail sale” means a sale of a cigar or pipe 33
tobacco by a remote retail seller to an ultimate consumer in this 34
State for which: 35
(a) The ultimate consumer submits the order for the sale by 36
means of a telephonic or other method of voice communication, 37
the mail or any other delivery service, or the Internet or any other 38
on-line service; or 39
(b) The cigar or pipe tobacco is delivered by mail or the use of 40
another delivery service. 41
8. “Remote retail seller” means a person who makes a remote 42
retail sale of a cigar or pipe tobacco to ultimate consumers in this 43
State, whether the person is located within or outside the borders 44
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of this State, if in the immediately preceding calendar year or the 1
current calendar year: 2
(a) The gross revenue of the person from the sale of cigars or 3
pipe tobacco, or both, to ultimate consumers in this State is greater 4
than $100,000; or 5
(b) The person made 200 or more sales of cigars or pipe 6
tobacco, or both, for delivery to ultimate consumers in this State. 7
9. “Retail dealer” means any person who is engaged in selling 8
other tobacco products to ultimate consumers. The term does not 9
include a remote retail seller. 10
[4.] 10. “Sale” means any transfer, exchange, barter, gift, offer 11
for sale, or distribution for consideration of other tobacco products. 12
[5.] 11. “Stock keeping unit” means a unique identifier 13
assigned by a distributor or remote retail seller to a cigar or pipe 14
tobacco for the purpose of tracking the inventory of cigars and 15
pipe tobacco acquired by the remote retail seller. 16
12. “Ultimate consumer” means a person who purchases one or 17
more other tobacco products for his or her household or personal use 18
and not for resale. 19
[6.] 13. “Vapor product” has the meaning ascribed to it in 20
NRS 370.054. 21
14. “Wholesale dealer of other tobacco products” means any 22
person who: 23
(a) Maintains a place of business in this State, purchases other 24
tobacco products from the manufacturer or a wholesale dealer and 25
possesses, receives, sells or otherwise disposes of such other 26
tobacco products to wholesale dealers or retail dealers within this 27
State; 28
(b) Does not maintain a place of business in this State and sells 29
or otherwise disposes of other tobacco products by any means [, 30
including, without limitation, through an Internet website,] to 31
wholesale dealers [,] or retail dealers [or ultimate consumers] within 32
this State; or 33
(c) Manufactures, produces, fabricates, assembles, processes, 34
labels or finishes other tobacco products within this State. 35
[7.] 15. “Wholesale price” means: 36
(a) Except as otherwise provided in paragraph (b), the price for 37
which other tobacco products are sold to a wholesale dealer of other 38
tobacco products, valued in money, whether paid in money or 39
otherwise, without any discount or other reduction on account of 40
any of the following: 41
(1) Trade discounts, cash discounts, special discounts or 42
deals, cash rebates or any other reduction from the regular sales 43
price; 44
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(2) The cost of materials used, labor or service cost, interest 1
charged, losses or any other expenses; 2
(3) The cost of transportation of the other tobacco products 3
before its purchase by the wholesale dealer of other tobacco 4
products; 5
(4) Any services that are a part of the sale, including, without 6
limitation, shipping, freight, warehousing, customer service, 7
advertising or any other service related to the sale; or 8
(5) The amount of any tax, not including any excise tax, 9
imposed by the United States upon or with respect to the other 10
tobacco product. 11
(b) For other tobacco products sold to a retail dealer [or an 12
ultimate consumer] by a wholesale dealer of other tobacco products 13
described in paragraph (c) of subsection [6,] 14 the established price 14
for which the other tobacco product is sold to the retail dealer [or 15
ultimate consumer] before any discount or other reduction is made. 16
Sec. 7. NRS 370.447 is hereby amended to read as follows: 17
370.447 Each person licensed as a wholesale dealer of other 18
tobacco products shall keep on hand at all times other tobacco 19
products of a wholesale value of at least $5,000 [.] at each location 20
in this State at which the wholesale dealer maintains a place of 21
business. 22
Sec. 8. NRS 370.450 is hereby amended to read as follows: 23
370.450 1. Except as otherwise provided in this section, there 24
is hereby imposed upon the receipt, purchase or sale of other 25
tobacco products in this State: 26
(a) [If the other tobacco products are not premium cigars, a] A 27
tax of 30 percent of the wholesale price of [those] other tobacco 28
products [; and] , other than premium cigars, or a tax of 30 percent 29
of the actual cost of cigars, other than premium cigars, or pipe 30
tobacco purchased by an ultimate consumer in this State from a 31
remote retail seller. 32
(b) [If the other tobacco products are premium cigars, a] Except 33
as otherwise provided in this paragraph, a tax of 30 percent of the 34
wholesale price of [those products except that, if] premium cigars 35
or a tax of 30 percent of the actual cost of premium cigars 36
purchased by an ultimate consumer in this State from a remote 37
retail seller. If 30 percent of the wholesale price or actual cost of 38
those products , as applicable, is: 39
(1) Greater than 50 cents for each premium cigar, the tax 40
imposed shall be 50 cents for each premium cigar. 41
(2) Less than 30 cents for each premium cigar, the tax 42
imposed shall be 30 cents for each premium cigar. 43
2. The provisions of subsection 1 do not apply to those 44
products which are: 45
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(a) Displayed or exhibited at a trade show, convention or other 1
exhibition in this State by a manufacturer or wholesale dealer of 2
other tobacco products who is not licensed in this State; or 3
(b) Distributed free of charge at a trade show, convention or 4
other exhibition or public event in this State, if the distributor has 5
obtained a license to distribute other tobacco products free of charge 6
for the trade show, convention or other exhibition or public event. 7
3. This tax: 8
(a) Is imposed: 9
(1) At the time the other tobacco products are first possessed 10
or received by a wholesale dealer of other tobacco products who 11
maintains a place of business in this State for sale or disposition in 12
this State; 13
(2) At the time the other tobacco products are sold by a 14
wholesale dealer of other tobacco products who does not maintain a 15
place of business in this State to a retail dealer [or] ; 16
(3) At the time a remote retail seller makes a remote retail 17
sale to an ultimate consumer [; or 18
(3)] in this State; or 19
(4) For other tobacco products manufactured, produced, 20
fabricated, assembled, processed, labeled or finished in this State, at 21
the time the other tobacco products are sold in this State to a 22
wholesale dealer of other tobacco products, retail dealer or ultimate 23
consumer. 24
(b) [Must] If the tax is imposed on a wholesale dealer of other 25
tobacco products, must be paid by the wholesale dealer [of other 26
tobacco products] to the Department, in accordance with the 27
provisions of NRS 370.465. The wholesale dealer [of other tobacco 28
products] is entitled to retain 0.25 percent of the taxes due to cover 29
the costs of collecting and administering the taxes if the taxes are 30
paid in accordance with the provisions of NRS 370.465. 31
(c) If the tax is imposed on a remote retail seller, must be paid 32
by the remote retail seller to the Department, in accordance with 33
the provisions of NRS 370.465. 34
4. Any wholesale dealer of other tobacco products or remote 35
retail seller who sells or distributes other tobacco products without 36
paying the tax provided for by this section is guilty of a 37
misdemeanor. 38
5. As used in this section, “premium cigar” means a cigar that 39
is rolled by hand, has a wrapper made of whole tobacco leaves and 40
does not have a filter or mouthpiece. 41
Sec. 9. NRS 370.465 is hereby amended to read as follows: 42
370.465 1. A wholesale dealer of other tobacco products 43
shall, not later than 20 days after the end of each month, submit to 44
the Department a report on a form prescribed by the Department 45
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setting forth such information as the Department may prescribe 1
concerning other tobacco products on which the tax provided by 2
NRS 370.450 was imposed during the [previous] preceding 3
calendar month. 4
2. A remote retail seller shall, not later than 20 days after the 5
end of each month, submit to the Department a report setting forth 6
such information as the Department may prescribe concerning 7
cigars and pipe tobacco on which the tax provided by NRS 370.450 8
was imposed during the preceding calendar month. The report 9
must include, without limitation, information concerning: 10
(a) All cigars and pipe tobacco brought into this State, or 11
caused to be brought into this State, by the remote retail seller, or 12
shipped or transported to ultimate consumers in this State by the 13
remote retail seller, during the preceding calendar month; and 14
(b) The actual cost and actual cost list price for each stock 15
keeping unit for the preceding calendar month. 16
3. Each report submitted pursuant to this section [on or after 17
August 20, 2001,] must be accompanied by the tax owed pursuant to 18
NRS 370.450 for other tobacco products on which that tax was 19
imposed during the previous month. 20
Sec. 10. NRS 370.480 is hereby amended to read as follows: 21
370.480 1. Every wholesale dealer of other tobacco products 22
must keep at its place of business complete and accurate records for 23
that place of business, including copies of all invoices of other 24
tobacco products which the wholesale dealer of other tobacco 25
products holds, purchases and delivers, distributes or sells in this 26
State. All records must be preserved for at least 5 years after the 27
date of purchase or after the date of the last entry made on the 28
record. 29
2. Every retail dealer shall keep at its place of business 30
complete and accurate records for that place of business, including 31
copies of all itemized invoices or purchases of other tobacco 32
products purchased and delivered from wholesale dealers of other 33
tobacco products. The invoices must show the name and address of 34
the wholesale dealer of other tobacco products and the date of the 35
purchase. All records must be preserved for at least 5 years after the 36
date of the purchase. 37
3. Every remote retail seller shall keep at the principal place 38
of business identified on the license issued to the remote retail 39
seller pursuant to NRS 370.567 complete and accurate records 40
related to remote retail sales to ultimate consumers in this State, 41
including itemized invoices indicating the actual cost or actual 42
cost list price paid by the remote retail seller for each store keeping 43
unit assigned to cigars and pipe tobacco sold to ultimate 44
consumers in this State. All records must be preserved for at least 45
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5 years after the date of the sale to the ultimate consumer in this 1
State or the date of the last entry made on the record, whichever is 2
later. 3
Sec. 11. NRS 370.490 is hereby amended to read as follows: 4
370.490 1. The Department shall allow to a wholesale dealer 5
of other tobacco products a credit of the amount of the tax paid 6
pursuant to NRS 370.450, not including any amount of the tax 7
retained by the wholesale dealer [of other tobacco products] to cover 8
the costs of collecting and administering the tax, for other tobacco 9
products that may no longer be sold. If the other tobacco products 10
have been purchased and delivered, a credit memo of the 11
manufacturer is required for proof of returned merchandise. 12
2. A credit must also be granted for any other tobacco products 13
shipped from this State and destined for retail sale and consumption 14
outside the State on which the tax has previously been paid. A 15
duplicate or copy of the invoice is required for proof of the sale 16
outside the State. 17
3. A wholesale dealer of other tobacco products may claim a 18
credit by filing with the Department the proof required by this 19
section. The claim must be made on a form prescribed by the 20
Department. 21
Sec. 12. NRS 370.531 is hereby amended to read as follows: 22
370.531 As used in NRS 370.531 to 370.597, inclusive, and 23
sections 2 and 3 of this act, unless the context otherwise requires, 24
the words and terms defined in NRS 370.533 to 370.565, inclusive, 25
and sections 2 and 3 of this act have the meanings ascribed to them 26
in those sections. 27
Sec. 13. NRS 370.551 is hereby amended to read as follows: 28
370.551 “Other tobacco product” has the meaning ascribed to 29
it in NRS [370.0318.] 370.440. 30
Sec. 14. NRS 370.567 is hereby amended to read as follows: 31
370.567 1. A person shall not engage in business as a 32
wholesale dealer of cigarettes, a wholesale dealer of other tobacco 33
products or a tobacco retail dealer in this State unless that person 34
first secures a license to engage in that activity from the 35
Department. 36
2. A person shall not engage in business as a cigarette vending 37
machine operator in this State unless that person first secures a 38
license to engage in that activity from the Department. 39
3. A person shall not engage in business as a logistics company 40
unless that person first secures a license to engage in that activity 41
from the Department. 42
4. A person shall not operate a warehouse or distribution center 43
unless that person first secures a license to engage in that activity 44
from the Department. 45
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5. A person shall not engage in business as a remote retail 1
seller unless the person first secures a license to engage in that 2
activity from the Department. 3
6. A manufacturer shall not: 4
(a) Sell any cigarettes to a wholesale dealer of cigarettes in this 5
State; 6
(b) Temporarily store, fulfill orders for or coordinate the 7
transport or delivery of cigarettes by using a logistics company; or 8
(c) Operate or permit any person other than the manufacturer to 9
operate a cigarette rolling machine for the purpose of producing, 10
filling, rolling, dispensing or otherwise manufacturing cigarettes, 11
unless that manufacturer first secures a license to engage in that 12
activity from the Department. 13
[6.] 7. A separate license is required to engage in each of the 14
activities described in this section. 15
[7.] 8. A person may be licensed as a wholesale dealer of 16
cigarettes, a wholesale dealer of other tobacco products, a tobacco 17
retail dealer and as an operator of a warehouse or distribution center. 18
Sec. 15. NRS 370.575 is hereby amended to read as follows: 19
370.575 1. An application for a license must: 20
[1.] (a) Be made to the Department on forms prescribed by the 21
Department. 22
[2.] (b) Include the name and address of the applicant. If the 23
applicant is a firm, association or partnership, the application must 24
include the name and address of each of its members. If the 25
applicant is a corporation, the application must include the names 26
and addresses of the president, vice president, secretary and 27
managing officer or officers. 28
[3.] (c) Specify the location, by street and number, of the 29
principal place of business of the applicant. In addition to specifying 30
the principal place of business of the applicant pursuant to this 31
subsection, an application for a license as a cigarette vending 32
machine operator must list all cigarette vending machine locations 33
for which the license is sought. 34
[4. Specify] 35
(d) Except as otherwise required by this paragraph, specify the 36
location, by street and number, of any place used by the applicant to 37
distribute, ship, affix stamps to, warehouse or store cigarettes or 38
other tobacco products and for which the license is sought. The 39
provisions of this paragraph do not apply to an application for a 40
license as a remote retail seller. 41
[5.] (e) Specify any other information the Department may 42
require to carry out the provisions of this chapter. 43
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[6.] (f) Except as otherwise provided in NRS 370.007 to 1
370.430, inclusive, and 370.531 to 370.597, inclusive, be 2
accompanied by the required license fee. 3
[7.] (g) Be accompanied by a certified copy of the certificate 4
required by NRS 602.010 or any renewal certificate required by 5
NRS 602.035. 6
2. In addition to the requirements of subsection 1, an 7
application for a license as a remote retail seller must provide 8
information concerning the independent, third-party age 9
verification service through which the applicant will perform an 10
age verification to comply with NRS 202.24935. 11
Sec. 16. NRS 370.583 is hereby amended to read as follows: 12
370.583 Each holder of a license , other than a license as a 13
remote retail seller, shall: 14
1. Sign the license or cause an authorized representative to sign 15
it. 16
2. Post the license in a conspicuous place in the premises for 17
which it was issued. 18
Licenses issued under the provisions of this chapter are 19
nontransferable, except that upon prior written notice to the 20
Department the location of the premises for which it was issued may 21
be changed. 22
Sec. 17. NRS 370.585 is hereby amended to read as follows: 23
370.585 A current license as a: 24
1. Manufacturer authorizes the holder thereof to: 25
(a) Sell cigarettes from the premises for which the license was 26
issued to a licensed wholesale dealer of cigarettes in this State; 27
(b) Ship cigarettes to a licensed logistics company; and 28
(c) Temporarily store, fulfill orders for or coordinate the 29
transport or delivery of cigarettes by using a licensed warehouse or 30
distribution center. 31
2. Wholesale dealer of cigarettes authorizes the holder thereof 32
to: 33
(a) Purchase unstamped cigarettes from any manufacturer who 34
holds a current license; 35
(b) Purchase stamped cigarettes from a licensed wholesale 36
dealer of cigarettes; 37
(c) Sell stamped cigarettes from the premises for which the 38
license was issued to any Indian tribe or colony listed by the 39
Department pursuant to NRS 370.571, to any licensed wholesale 40
dealer of cigarettes or to any licensed tobacco retail dealer; and 41
(d) Temporarily store and fulfill orders for stamped cigarettes at 42
a licensed warehouse or distribution center or through a licensed 43
logistics company. 44
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3. Wholesale dealer of other tobacco products authorizes the 1
holder thereof to: 2
(a) Purchase other tobacco products from any manufacturer of 3
other tobacco products or wholesale dealer of other tobacco 4
products; 5
(b) Sell other tobacco products from the premises for which the 6
license was issued to any Indian tribe or colony listed by the 7
Department pursuant to NRS 370.571, to any wholesale dealer of 8
other tobacco products who holds a current license or to any tobacco 9
retail dealer who holds a current license; and 10
(c) Temporarily store and fulfill orders for other tobacco 11
products at a licensed warehouse or distribution center or through a 12
licensed logistics company. 13
4. Tobacco retail dealer authorizes the holder thereof to: 14
(a) Purchase stamped cigarettes from any wholesale dealer of 15
cigarettes who holds a current license; 16
(b) Sell cigarettes from the premises for which the license was 17
issued to any consumer in this State; 18
(c) Purchase other tobacco products from a wholesale dealer of 19
other tobacco products who holds a current license; 20
(d) Sell other tobacco products to any consumer in this State; 21
and 22
(e) Temporarily store and fulfill orders for cigarettes or other 23
tobacco products at a licensed warehouse or distribution center. 24
5. Remote retail seller authorizes the holder thereof to make 25
retail sales of cigars and pipe tobacco from the premises for which 26
the license was issued to any ultimate consumer in this State. 27
6. Cigarette vending machine operator authorizes the holder 28
thereof to sell Nevada stamped cigarettes by means of coin-operated 29
machines within the borders of this State. 30
Sec. 18. NRS 370.587 is hereby amended to read as follows: 31
370.587 1. Each license issued by the Department is valid 32
only for the calendar year for which it is issued, and must be 33
renewed annually. 34
2. The Department shall not charge any license fees to operate 35
a warehouse or distribution center or for a license as a logistics 36
company. Except as otherwise provided in subsections 3 and 5, the 37
Department shall charge: 38
(a) For a license as a manufacturer, an annual license fee of 39
$1,000. 40
(b) For a license as a wholesale dealer of cigarettes, an annual 41
license fee of $650. 42
(c) For a license as a wholesale dealer of other tobacco products, 43
an annual license fee of $650. 44
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(d) For a license as a remote retail seller, an annual license 1
fee of $650. 2
(e) For a license as a tobacco retail dealer, $50. 3
3. If a license is issued at any time during the year other than 4
on January 1, except for the renewal of a delinquent license pursuant 5
to subsection 5, the licensee shall pay a proportionate part of the 6
annual fee for the remainder of the year, but not less than 25 percent 7
of the annual license fee. 8
4. The fees for a license are due and payable on January 1 of 9
each year. If the annual license fee is not paid by January 15, the 10
license is cancelled automatically. 11
5. A license which is cancelled for nonpayment of the annual 12
license fee may be renewed at any time by the payment of the fee 13
plus a 5 percent penalty thereon. 14
Sec. 19. NRS 370.589 is hereby amended to read as follows: 15
370.589 1. Except as otherwise provided in this section, each 16
licensed wholesale dealer of cigarettes , [and] licensed wholesale 17
dealer of other tobacco products and remote retail seller shall 18
furnish a bond executed by the [wholesale dealer] licensee as 19
principal, and by a corporation qualified under the laws of this State 20
as surety, payable to the State of Nevada and conditioned upon the 21
payment of all excise taxes required to be precollected or paid by 22
the wholesale dealer or remote retail seller, as applicable, under the 23
provisions of this chapter. Each bond must be in a principal sum 24
equal to: 25
(a) For a wholesale dealer of cigarettes, the largest amount of 26
tax precollected by the wholesale dealer in any quarter of the 27
preceding year; [or] 28
(b) For a wholesale dealer of other tobacco products, the largest 29
amount of tax paid by the wholesale dealer in any quarter of the 30
preceding year [.] ; or 31
(c) For a remote retail seller, the largest amount of tax paid by 32
the remote retail seller in any quarter of the preceding year. 33
If the information to establish that amount is not available, then 34
in a sum required from a licensee operating under conditions 35
deemed comparable by the Department. No bond may be for less 36
than $1,000. When cash is used, the amount must be rounded up to 37
the next larger integral multiple of $100. 38
2. Except as otherwise provided in this section, each licensed 39
wholesale dealer of cigarettes who wishes to defer payment on the 40
purchase of revenue stamps shall furnish a bond executed by the 41
wholesale dealer of cigarettes as principal, and by a corporation 42
qualified under the laws of this State as surety, payable to the State 43
of Nevada and conditioned upon the payment of all deferred 44
payments for revenue stamps. Each bond must be in a principal sum 45
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equal to the maximum amount of revenue stamps which the 1
wholesale dealer of cigarettes may have unpaid at any time. No 2
bond may be for less than $1,000. When cash is used, the amount 3
must be rounded up to the next larger integral multiple of $100. 4
3. Upon application and a satisfactory showing, the 5
Department may increase or decrease the amount of a bond required 6
by subsection 1 or 2, based on the record of taxes remitted by the 7
wholesale dealer of cigarettes , [or] wholesale dealer of other 8
tobacco products [.] or remote retail seller. 9
4. The Department may waive the requirement of the bond 10
required by subsection 1 or 2, whenever a licensed wholesale dealer 11
of cigarettes , [or] wholesale dealer of other tobacco products or 12
remote retail seller has maintained a satisfactory record of payment 13
of excise taxes or deferred payments, respectively, for a period of 5 14
consecutive years. 15
5. A wholesale dealer of cigarettes , [and] a wholesale dealer of 16
other tobacco products [are] or a remote retail seller is not entitled 17
to a refund of any portion of money paid as a bond pursuant to this 18
section if the wholesale dealer of cigarettes , [or] wholesale dealer 19
of other tobacco products or remote retail seller has failed to file a 20
report required by this chapter or owes the Department any fee, 21
payment or penalty. 22
Sec. 20. NRS 202.24935 is hereby amended to read as 23
follows: 24
202.24935 1. It is unlawful for a person to knowingly sell or 25
distribute cigarettes, cigarette paper, products containing, made or 26
derived from tobacco, vapor products, alternative nicotine products 27
or products containing, made or derived from nicotine to a person 28
under the age of 21 years through the use of a computer network, 29
telephonic network or other electronic network. 30
2. Every person who sells or distributes cigarettes, cigarette 31
paper, products containing, made or derived from tobacco, vapor 32
products, alternative nicotine products or products containing, made 33
or derived from nicotine to an ultimate consumer in this State 34
through the use of a computer network, telephonic network or 35
electronic network shall: 36
(a) Ensure that the packaging or wrapping of the items when 37
they are shipped is clearly marked with the word “cigarettes” or, if 38
the items being shipped are not cigarettes, the words “tobacco 39
products,” “vapor products” or “nicotine products,” as applicable. 40
(b) Obtain the full name, date of birth and residential address of 41
the purchaser and perform an age verification through an 42
independent, third-party age verification service that compares 43
information available from [public records] a commercially 44
available database, or aggregate of such databases, that are 45
– 14 –
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regularly used by governmental agencies and businesses to verify 1
age and identity, to the personal information entered by the person 2
during the ordering process [that establishes] to establish that the 3
person is over the age of 21 years. 4
3. Every person who makes sales as described in subsection 2 5
must certify annually to the Attorney General that the person uses an 6
independent, third-party age verification service as described in 7
paragraph (b) of subsection 2. 8
4. In addition to or in lieu of any other civil or criminal remedy 9
provided by law, a person who violates this section is subject to: 10
(a) A civil penalty in an amount not more than $1,000 for each 11
violation; and 12
(b) The suspension or revocation of the license of the person by 13
the Department of Taxation, if the person is licensed pursuant to 14
chapter 370 of NRS. 15
5. Any violation of subsection 2 constitutes a deceptive trade 16
practice for the purpose of NRS 598.0903 to 598.0999, inclusive. 17
6. For the purposes of this section, any sale of cigarettes, 18
cigarette paper, products containing, made or derived from tobacco, 19
vapor products, alternative nicotine products or products containing, 20
made or derived from nicotine to a natural person in this State who 21
does not intend to resell the item constitutes a sale to an ultimate 22
consumer. 23
Sec. 21. This act becomes effective on July 1, 2025. 24
H