Bill
Bill > SB2281
ND SB2281
ND SB2281The 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.
summary
Introduced
01/20/2025
01/20/2025
In Committee
03/11/2025
03/11/2025
Crossed Over
02/25/2025
02/25/2025
Passed
Dead
05/03/2025
05/03/2025
Introduced Session
69th Legislative Assembly
Bill Summary
A BILL for an Act to create and enact five new sections to chapter 57-36 of the North Dakota Century Code, relating to a tax on cigars, other tobacco products, alternative tobacco products, electronic smoking devices, and electronic smoking device substances and a tobacco tax distribution fund; to amend and reenact section 57-36-01, subsection 1 of section 57-36-31, and section 57-36-32 of the North Dakota Century Code, relating to 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.
AI Summary
This bill updates North Dakota's tobacco tax laws by expanding definitions and creating new tax structures for various tobacco and nicotine products. It defines new categories of tobacco products like alternative tobacco products (such as nicotine gels and pouches), and establishes separate tax rates for different product types: cigarettes will have two distinct tax rates (17 mills and 12.5 mills per cigarette), while cigars will be taxed at 32% of their wholesale purchase price. Other tobacco products, alternative tobacco products, and electronic smoking devices will be taxed at 28% of their wholesale purchase price. The bill creates a new "tobacco tax distribution fund" where these new tax revenues will be collected, with funds to be split between local public health units and 988 crisis hotline services. The tax changes will take effect for taxable events occurring after June 30, 2025, and include expanded definitions to clarify what constitutes different types of tobacco and nicotine products, ensuring a more comprehensive approach to tobacco product taxation and regulation.
Committee Categories
Budget and Finance
Sponsors (4)
Last Action
Second reading, failed to pass, yeas 21 nays 70 (on 03/12/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo2281.html |
| BillText | https://ndlegis.gov/assembly/69-2025/regular/documents/25-0684-02000.pdf |
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