Bill Text: OH SB37 | 2009-2010 | 128th General Assembly | Introduced

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Bill Title: To increase the tobacco products excise tax rate and to credit some of the additional revenue to the Tobacco Use Prevention Fund.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2009-02-10 - To Ways & Means & Economic Development [SB37 Detail]

Download: Ohio-2009-SB37-Introduced.html

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As Introduced

128th General Assembly Regular Session 2009-2010

S. B. No. 37

Senator Miller, D. 

Cosponsors: Senators Miller, R., Schiavoni 

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A BILL

To amend sections 5743.51, 5743.62, and 5743.63 of

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the Revised Code to increase the tobacco products

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excise tax rate and to credit some of the

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additional revenue to the Tobacco Use Prevention

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Fund.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 5743.51, 5743.62, and 5743.63 of the	6
Revised Code be amended to read as follows:	7

Sec. 5743.51.  (A) To provide revenue for the general revenue	8
fund of the state, an excise tax on tobacco products is hereby	9
levied at the rate of seventeenfifty-four per cent of the	10
wholesale price of the tobacco product received by a distributor	11
or sold by a manufacturer to a retail dealer located in this	12
state. Each distributor who brings tobacco products, or causes	13
tobacco products to be brought, into this state for distribution	14
within this state, or any out-of-state distributor who sells	15
tobacco products to wholesale or retail dealers located in this	16
state for resale by those wholesale or retail dealers is liable	17
for the tax imposed by this section. Only one sale of the same	18
article shall be used in computing the amount of the tax due.	19

(B) The treasurer of state shall place to the credit of the	20
tax refund fund created by section 5703.052 of the Revised Code,	21
out of the receipts from the tax levied by this section, amounts	22
equal to the refunds certified by the tax commissioner pursuant to	23
section 5743.53 of the Revised Code. The treasurer shall credit	24
forty per cent of the receipts from the tax levied under this	25
section to the tobacco use prevention fund created in section	26
3701.841 of the Revised Code. The balance of the taxes collected	27
under this section shall be paid into the general revenue fund.	28

(C) The commissioner may adopt rules as are necessary to	29
assist in the enforcement and administration of sections 5743.51	30
to 5743.66 of the Revised Code, including rules providing for the	31
remission of penalties imposed.	32

(D) A manufacturer is not liable for payment of the tax	33
imposed by this section for sales of tobacco products to a retail	34
dealer that has filed a signed statement with the manufacturer in	35
which the retail dealer agrees to pay and be liable for the tax,	36
as long as the manufacturer has provided a copy of the statement	37
to the tax commissioner.	38

Sec. 5743.62.  (A) To provide revenue for the general revenue	39
fund of the state, an excise tax is hereby levied on the seller of	40
tobacco products in this state at the rate of seventeenfifty-four	41
per cent of the wholesale price of the tobacco product whenever	42
the tobacco product is delivered to a consumer in this state for	43
the storage, use, or other consumption of such tobacco products.	44
The tax imposed by this section applies only to sellers having	45
nexus in this state, as defined in section 5741.01 of the Revised	46
Code.	47

(B) A seller of tobacco products who has nexus in this state	48
as defined in section 5741.01 of the Revised Code shall register	49
with the tax commissioner and supply any information concerning	50
the seller's contacts with this state as may be required by the	51
tax commissioner. A seller who does not have nexus in this state	52
may voluntarily register with the tax commissioner. A seller who	53
voluntarily registers with the tax commissioner is entitled to the	54
same benefits and is subject to the same duties and requirements	55
as a seller required to be registered with the tax commissioner	56
under this division.	57

(C) Each seller of tobacco products subject to the tax levied	58
by this section, on or before the last day of each month, shall	59
file with the tax commissioner a return for the preceding month	60
showing any information the tax commissioner finds necessary for	61
the proper administration of sections 5743.51 to 5743.66 of the	62
Revised Code, together with remittance of the tax due, payable to	63
the treasurer of state. The return and payment of the tax required	64
by this section shall be filed in such a manner that it is	65
received by the tax commissioner on or before the last day of the	66
month following the reporting period. If the return is filed and	67
the amount of the tax shown on the return to be due is paid on or	68
before the date the return is required to be filed, the seller is	69
entitled to a discount equal to two and five-tenths per cent of	70
the amount shown on the return to be due.	71

(D) The tax commissioner shall immediately forward to the	72
treasurer of state all money received from the tax levied by this	73
section, and the treasurer. The treasurer shall credit forty per	74
cent of the receipts from the tax levied under this section to	75
the tobacco use prevention fund created in section 3701.841 of	76
the Revised Code and shall credit the remaining amount to the	77
general revenue fund.	78

(E) Each seller of tobacco products subject to the tax levied	79
by this section shall mark on the invoices of tobacco products	80
sold that the tax levied by that section has been paid and shall	81
indicate the seller's account number as assigned by the tax	82
commissioner.	83

Sec. 5743.63.  (A) To provide revenue for the general revenue	84
fund of the state, an excise tax is hereby levied on the storage,	85
use, or other consumption of tobacco products at the rate of	86
seventeenfifty-four per cent of the wholesale price of the	87
tobacco product, provided the tax has not been paid by the seller	88
as provided in section 5743.62 of the Revised Code, or by the	89
distributor as provided in section 5743.51 of the Revised Code.	90

(B) Each person subject to the tax levied by this section, on	91
or before the last day of each month, shall file with the tax	92
commissioner a return for the preceding month showing any	93
information the tax commissioner finds necessary for the proper	94
administration of sections 5743.51 to 5743.66 of the Revised Code,	95
together with remittance of the tax due, payable to the treasurer	96
of state. The return and payment of the tax required by this	97
section shall be filed in such a manner that it is received by the	98
tax commissioner on or before the last day of the month following	99
the reporting period.	100

(C) The tax commissioner shall immediately forward to the	101
treasurer of state all money received from the tax levied by this	102
section, and the treasurer. The treasurer shall credit forty per	103
cent of the receipts from the tax levied under this section to	104
the tobacco use prevention fund created in section 3701.841 of	105
the Revised Code and shall credit the remaining amount to the	106
general revenue fund.	107

Section 2. That existing sections 5743.51, 5743.62, and	108
5743.63 of the Revised Code are hereby repealed.	109

Section 3. That the amendment of sections 5743.51, 5743.62,	110
and 5743.63 of the Revised Code by this act applies on and after	111
July 1, 2009.	112