Bill Text: HI SB3288 | 2024 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-29 - Referred to CPN, WAM. [SB3288 Detail]
Download: Hawaii-2024-SB3288-Introduced.html
|
THE SENATE |
S.B. NO. |
3288 |
|
THIRTY-SECOND LEGISLATURE, 2024 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that local premium cigar sellers whose products are made for adult consumers, including cigars produced with Hawaii-grown tobacco, are unfairly burdened by being subject to a non-differentiated state percentage tax that is generally passed on to customers. As a result, cigar retailers are put at a competitive disadvantage as lower priced premium cigars can be purchased from the mainland United States or through the black market at a significantly lower cost.
The legislature finds that it is necessary to ease the unfair burden on the local premium cigar industry that has been at a competitive disadvantage due to the percentage tax, which can also help the State collect more tax revenue as in-state premium cigar sales should increase when prices become more competitive with the other states.
Accordingly, the purpose of this Act is to:
(1) Establish a definition for "premium cigar" that is distinct from a "large cigar";
(2) Exclude premium cigars from percentage excise tax; and
(3) Establish an excise tax on premium cigars at a rate of 50 cents per premium cigar.
SECTION 2. Section 245-1, Hawaii Revised Statutes, is amended as follows:
1. By adding two new definitions to be appropriately inserted and to read:
""Characterizing flavor"
means a distinguishable taste or aroma of candy, chocolate, vanilla, fruit,
berry, nut, herb, spice, honey, or an alcoholic drink that is imparted to
tobacco or tobacco smoke either before or during consumption. Tobacco products are deemed to have a "characterizing
flavor" if the product is advertised or marketed as having or producing
the taste or aroma of candy, chocolate, vanilla, fruit, berry, nut, herb,
spice, honey, or an alcoholic drink.
"Characterizing flavor" does not include a taste or aroma from
tobacco.
"Premium cigar" means any roll
for smoking that:
(1) Is
wrapped in whole tobacco leaf;
(2) Contains
a one hundred per cent leaf tobacco binder;
(3) Contains
at least fifty per cent (of the filler by weight) long filler tobacco;
(4) Is
handmade or hand rolled;
(5) Has
no filter, non-tobacco tip, or non-tobacco mouthpiece;
(6) Does
not have a characterizing flavor other than tobacco;
(7) Contains
only tobacco, water, and vegetable gum with no other ingredients or additives;
and
(8) Weighs
more than six pounds per thousand units."
2. By amending the definition of "tobacco products" to read:
""Tobacco
products" means:
(1) Tobacco in any form, other than cigarettes or little cigars, that is prepared or intended for consumption or for personal use by humans, including large cigars, premium cigars, and any substitutes thereof other than cigarettes that bear the semblance thereof, snuff, chewing or smokeless tobacco, and smoking or pipe tobacco; or
(2) Electronic smoking devices; or
(3) E-liquid."
SECTION 3. Section 245-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Every wholesaler or dealer, in addition to any other taxes provided by law, shall pay, for the privilege of conducting business and other activities in the State, an excise tax equal to:
(1) 5.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after June 30, 1998, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;
(2) 6.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after September 30, 2002, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;
(3) 6.50 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after June 30, 2003, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;
(4) 7.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer after June 30, 2004, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;
(5) 8.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after September 30, 2006, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;
(6) 9.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after September 30, 2007, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;
(7) 10.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after September 30, 2008, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;
(8) 13.00 cents for each cigarette sold, used, or possessed by a wholesaler or dealer on and after July 1, 2009, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;
(9) 11.00 cents for each little cigar sold, used,
or possessed by a wholesaler or dealer on and after October 1, 2009, whether or
not sold at wholesale, or if not sold, then at the same rate upon the use by
the wholesaler or dealer;
(10) 15.00 cents for each cigarette or little cigar sold, used, or possessed by a wholesaler or dealer on and after July 1, 2010, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;
(11) 16.00 cents for each cigarette or little cigar sold, used, or possessed by a wholesaler or dealer on and after July 1, 2011, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer;
(12) 50.00 cents for each premium cigar of any
length sold, used, or possessed by a wholesaler or dealer on or after January
1, 2025, whether or not sold at wholesale, or if not sold, then at the same
rate upon the use by the wholesaler or dealer;
[(12)] (13)
Seventy
per cent of the wholesale price of each article or item of tobacco products,
other than large cigars, premium cigars, electronic smoking devices, and
e-liquids, sold by the wholesaler or dealer on and after September 30, 2009,
whether or not sold at wholesale, or if not sold, then at the same rate upon
the use by the wholesaler or dealer;
[(13)] (14)
Fifty per cent of the wholesale price of each large cigar of any length
sold, used, or possessed by a wholesaler or dealer on and after September 30,
2009, whether or not sold at wholesale, or if not sold, then at the same rate
upon the use by the wholesaler or dealer; and
[(14)] (15) Seventy per cent of the wholesale price of
each electronic smoking device or e-liquid sold, used, or possessed by a wholesaler
or dealer on and after January 1, 2024, whether or not sold at wholesale, or if
not sold, then at the same rate upon the use by the wholesaler or dealer.
Where the tax imposed has been paid on cigarettes, little cigars, or tobacco products that thereafter become the subject of a casualty loss deduction allowable under chapter 235, the tax paid shall be refunded or credited to the account of the wholesaler or dealer. The tax shall be applied to cigarettes through the use of stamps."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2024.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
Report Title:
Tobacco Products; Premium Cigars; Definition; Excise Tax
Description:
Establishes
a definition for "premium cigar" that is distinct from a "large
cigar" and adds a definition for "characterizing flavor" in the Cigarette
Tax and Tobacco Tax Law. Excludes
premium cigars from percentage excise tax.
Establishes an excise tax at a rate of 50 cents per premium cigar.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
