Amends certain definitions relating to tobacco products and changes the minimum pack sizes for tobacco products and the tax amount for tobacco products

BILL NUMBER:S4365

Title of bill

An act to amend the public health law and the tax law, in relation to amending certain definitions relating to tobacco products; and to amend the public health law and the tax law, in relation to changing the minimum pack sizes for tobacco products and the tax amount for tobacco products

Purpose

To ensure that state definition of all tobacco products reaches all of the new smokeless tobacco products and remain comprehensive so that all products will not escape having to fully comply with all state tobacco product tax laws.

Summary of provisions

Section 1399-aa subdivision 5 of the public health law is amended: To make sure that the state definition of "tobacco products" reaches all new and novel smokeless tobacco products.

Section 1399-aa of the public health law is amended by adding a new subdivision 14: Making all state "cigarette" definitions comprehensive to fully comply with all state tobacco product laws.

Subdivisions 1, 2 and 2-a of section 470 of the tax law, subdivision 1 as amended by section 14 and subdivision 2 as amended by section 15 of part D of chapter 134 of the laws of 2010 and subdivision 2-a as added by chapter 552 of the laws of 2008, are amended: (i)To reflect the changes to the definition of "cigarette" to make all definitions comprehensive to fully comply with all state tobacco product laws. (ii)To make all state "smokeless tobacco" and "tobacco product" definitions comprehensive.

A new subdivision 2-c is added: To make sure the weight-based tax does not apply to very-low-weight smokeless tobacco.

A new subdivision 2-d is added: "Moist snuff" is defined.

Subdivision 2 of section 1399-gg of the public health law is amended: Set minimum pack sizes for all tobacco products.

Subdivision 1 of section 471-b of the tax law is amended: To avoid sharply under-taxing new and novel tobacco products compared to regular tobacco products, New York should tax all the different types of tobacco products at the same or parallel high rates.

Justification

New York collects more than $2 billion in tobacco taxes and related revenue every year, but the state has consistently cut the amount dedicated to the comprehensive, evidence-based Tobacco Control Program that includes hard-hitting ads, effective cessation and prevention services, smoke-free air laws to protect all workers from toxic secondhand smoke, and an aggressive attack on point-of-sale marketing in bodegas and elsewhere in our community. In New York, smoking still costs 70 lives each day. Health care costs amount to $8.1 billion

annually, including more than $2 billion from Medicaid alone. Lost wages and productivity linked to smoking are $6.05 billion a year. The proposed legislation would further the state's tobacco cessation efforts by raising much needed revenue, at the same time it seeks to discourage advertising to the most vulnerable group of New Yorkers which smokeless tobacco is marketed to - our children. The proposal would:

*Raise the state tax on moist snuff to $3.63 per ounce and on other tobacco products (OTPs) to 95% of wholesale price *Establish minimum tax rates for each major type of OTP based on the state cigarette tax *Close tax loopholes that allow some cigarettes to be taxed as cigars *Fix definitions that could allow some new types of tobacco products to slip through the cracks and escape taxation

Legislative history

None.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.