Bill Text: AZ SB1527 | 2019 | Fifty-fourth Legislature 1st Regular | Introduced
Bill Title: Smoking devices; tax; medical research
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2019-02-20 - Senate HHS Committee action: Do Pass Amended, voting: (7-1-0-0) [SB1527 Detail]
Download: Arizona-2019-SB1527-Introduced.html
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REFERENCE TITLE: smoking devices; tax; medical research |
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State of Arizona Senate Fifty-fourth Legislature First Regular Session 2019
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SB 1527 |
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Introduced by Senators Carter: Brophy McGee
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AN ACT
amending sections 36‑773, 42‑3001, 42‑3051 and 42‑3052, Arizona Revised Statutes; amending title 42, chapter 3, article 3, Arizona Revised Statutes, by adding section 42‑3105; relating to luxury tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 36-773, Arizona Revised Statutes, is amended to read:
36-773. Health research account
A. Five cents of each dollar in the tobacco tax and health care fund and monies appropriated pursuant to section 42‑3105 shall be deposited in the health research account for research on preventing and treating tobacco‑related disease and addiction and alzheimer's disease.
B. The department of health services shall administer the account. The department shall distribute the first $5,000,000 deposited in the account each year to a statewide Alzheimer's disease research consortium that includes public and private participating institutions for Alzheimer's disease research.
C. Monies that are deposited in the health research account shall only be used to supplement monies that are appropriated by the legislature for health research purposes and shall not be used to supplant those appropriated monies.
Sec. 2. Section 42-3001, Arizona Revised Statutes, is amended to read:
42-3001. Definitions
In this chapter, unless the context otherwise requires:
1. "Affix" and "affixed" include imprinting tax meter stamps on packages and individual containers as authorized by the department.
2. "Brand family" has the same meaning prescribed in section 44‑7111.
3. "Cider" means vinous liquor that is made from the normal alcoholic fermentation of the juice of sound, ripe apples, pears or other pome fruit, including flavored, sparkling and carbonated cider and cider made from condensed apple, pear or other pome fruit must, and that contains more than one-half of one percent of alcohol by volume but not more than seven percent of alcohol by volume.
4. "Cigar" means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco other than any roll of tobacco that is a cigarette, as defined in paragraph 5, subdivision (b) of this section.
5. "Cigarette" means either of the following:
(a) Any roll of tobacco wrapped in paper or any substance not containing tobacco.
(b) Any roll of tobacco wrapped in any substance containing tobacco that, because of its appearance, the type of tobacco used in the filler or its packaging and labeling, is likely to be offered to or purchased by a consumer as a cigarette described in subdivision (a) of this paragraph. This subdivision shall be interpreted consistently with the classification guidelines established by the federal alcohol and tobacco tax and trade bureau.
6. "Consumer" means a person in this state that comes into possession of any luxury subject to the tax imposed by this chapter and that, on coming into possession of the luxury, is not a distributor intending to sell or distribute the luxury, retailer or wholesaler.
7. "Craft distiller" means a distiller in the United States or in a territory or possession of the United States that holds a license pursuant to section 4‑205.10.
8. "Distributor" means any person that manufactures, produces, ships, transports or imports into this state or in any manner acquires or possesses for the purpose of making the first sale of the following:
(a) Cigarettes without Arizona tax stamps affixed as required by this article.
(b) Roll-your-own tobacco or other tobacco products on which the taxes have not been paid as required by this chapter.
9. "electronic smoking device":
(a) Means any device that can be used to deliver aerosolized or vaporized nicotine to an individual inhaling from the device, including an e‑cigarette, e‑cigar, e‑pipe, vape pen or e‑hookah.
(b) Includes:
(i) Any component, part or accessory of the device, whether or not sold separately.
(ii) any substance intended to be aerosolized or vaporized during the use of the device.
(c) Does not include:
(i) Any battery or battery charger that is sold separately.
(ii) Any Drugs, devices or combination products that are authorized for sale by the United States food and drug administration. For the purposes of this item, "device" and "drug" have the same meanings prescribed in the federal food, drug, and cosmetic act (21 United States code section 321) and "combination product" means a combination product described in the federal food, drug, and cosmetic act (21 United States code section 353(g)).
9. 10. "Farm winery" has the same meaning prescribed in section 4‑101.
10. 11. "First sale" means the initial sale or distribution in intrastate commerce or the initial use or consumption of cigarettes, roll‑your-own tobacco or other tobacco products.
11. 12. "Luxury" means any article, object or device on which a tax is imposed under this chapter.
12. 13. "Malt liquor" means any liquid that contains more than one‑half of one percent alcohol by volume and that is made by the process of fermentation and not distillation of hops or grains, but not including:
(a) Liquids made by the process of distillation of such substances.
(b) Medicines that are unsuitable for beverage purposes.
13. 14. "Master settlement agreement" has the same meaning prescribed in section 44‑7101.
14. 15. "Microbrewery" has the same meaning prescribed in section 4‑101.
15. 16. "Nonparticipating manufacturer" has the same meaning prescribed in section 44‑7111.
16. 17. "Other tobacco products" means tobacco products other than cigarettes and roll-your-own tobacco.
17. 18. "Participating manufacturer" has the same meaning prescribed in section 44‑7111.
18. 19. "Person" means any individual, firm, partnership, joint venture, association, corporation, municipal corporation, estate, trust, club, society or other group or combination acting as a unit, and the plural as well as the singular number.
19. 20. "Place of business" means a building, facility site or location where an order is received or where tobacco products are sold, distributed or transferred. Place of business does not include a vehicle.
20. 21. "Retailer" means any person that comes into possession of any luxury subject to the taxes imposed by this chapter for the purpose of selling it for consumption and not for resale.
21. 22. "Roll-your-own tobacco" means any tobacco that, because of its appearance, type, packaging or labeling, is suitable for use and likely to be offered to or purchased by consumers as tobacco for making cigarettes. This paragraph shall be interpreted consistently with the term as used in section 44‑7101. This paragraph shall be interpreted consistently with the classification guidelines established by the federal alcohol and tobacco tax and trade bureau.
22. 23. "Smoking tobacco" means any tobacco that, because of its appearance, type, packaging, labeling or promotion, is suitable for use and likely to be offered to or purchased by consumers as tobacco for making cigarettes or otherwise consumed by burning. Smoking tobacco includes pipe tobacco and roll-your-own tobacco.
23. 24. "Spirituous liquor" means any liquid that contains more than one‑half of one percent alcohol by volume, that is produced by distillation of any fermented substance and that is used or prepared for use as a beverage. Spirituous liquor does not include medicines that are unsuitable for beverage purposes.
24. 25. "Tobacco product manufacturer" has the same meaning prescribed in section 44‑7101.
25. 26. "Tobacco products" means all luxuries included in section 42‑3052, paragraphs 5 through 9.
26. 27. "Vehicle" means a device in, on or by which a person or property is or may be transported or drawn on the roads of this state regardless of the means by which it is propelled or whether it runs on a track.
27. 28. "Vinous liquor" means any liquid that contains more than one‑half of one percent alcohol by volume and that is made by the process of fermentation of grapes, berries, fruits, vegetables or other substances but does not include:
(a) Liquids in which hops or grains are used in the process of fermentation.
(b) Liquids made by the process of distillation of hops or grains.
(c) Medicines that are unsuitable for beverage purposes.
28. 29. "Wholesaler" means a person that sells any spirituous, vinous or malt liquor taxed under this chapter to retail dealers or for the purposes of resale only.
Sec. 3. Section 42-3051, Arizona Revised Statutes, is amended to read:
42-3051. Levy of tax
In addition to all other taxes there is levied and imposed and there shall be collected and deposited, pursuant to sections 35‑146 and 35‑147, in the manner provided by this chapter, taxes on all spirituous, vinous and malt liquors and on all electronic smoking devices, cigarettes, cigars, smoking tobacco, plug tobacco, snuff and other forms of tobacco, for use as may be prescribed by law.
Sec. 4. Section 42-3052, Arizona Revised Statutes, is amended to read:
42-3052. Classifications of luxuries; rates of tax; definition
The taxes under this chapter are imposed at the following rates:
1. On each sealed container of spirituous liquor at the rate of three dollars $3 per gallon and at a proportionate rate for any lesser or greater quantity than one gallon.
2. On each container of vinous liquor, except cider, of which the alcoholic content is not greater than twenty‑four per cent percent by volume at the rate of eighty‑four cents $.84 per gallon and at a proportionate rate for any lesser or greater quantity than one gallon.
3. On each container of vinous liquor of which the alcoholic content is greater than twenty‑four per cent percent by volume, containing eight ounces or less, twenty‑five cents $.25, and for each eight ounces for containers containing more than eight ounces, twenty‑five cents $.25.
4. On each gallon of malt liquor or cider, sixteen cents $.16, and at a proportionate rate for any lesser or greater quantity than one gallon.
5. On each cigarette, nine‑tenths cent.
6. On smoking tobacco, snuff, fine cut chewing tobacco, cut and granulated tobacco, shorts and refuse of fine cut chewing tobacco, and refuse, scraps, clippings, cuttings and sweepings of tobacco, excluding tobacco powder or tobacco products used exclusively for agricultural or horticultural purposes and unfit for human consumption, two cents $.02 per ounce or major fraction of an ounce.
7. On all cavendish, plug or twist tobacco, one‑half cent per ounce or fractional part of an ounce.
8. On each twenty small cigars or fractional part weighing not more than three pounds per thousand, four cents $.04.
9. On cigars of all descriptions except those included in paragraph 8 of this section, made of tobacco or any tobacco substitute:
(a) If manufactured to retail at not more than five cents $.05 each, two cents $.02 on each three cigars.
(b) If manufactured to retail at more than five cents $.05 each, two cents $.02 on each cigar.
10. on electronic smoking devices, forty‑three percent of the wholesale cost of the product.
Sec. 5. Title 42, chapter 3, article 3, Arizona Revised Statutes, is amended by adding section 42-3105, to read:
42-3105. Monies allocated to the health research account; exemption
A. The monies collected pursuant to section 42‑3052, paragraph 10 are allocated and appropriated annually to the health research account established by section 36‑773.
B. Monies appropriated pursuant to subsection A of this section are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.
Sec. 6. Requirements for enactment; two-thirds vote
Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.
