Amendment #1101 to H3800
Vape Tax and Smokeless Tobacco
Mr. Jones of North Reading moves to amend the bill by inserting after section 5, the following 2 new sections:-
SECTION 5A. Section 30B of chapter 10 of the General Laws, as so appearing, is hereby amended by inserting after the word "cigar", in line 2, the following words:- or vapor product;
SECTION 5B. Said section 30B of said chapter 10, as so appearing, is hereby further amended by inserting after the word "cigar", in line 3, the following words:- , vapor product.
And moves to further amend the bill by inserting after section 7, the following new section:-
SECTION 7A. Section 6 of chapter 14 of the General Laws, as so appearing, is hereby amended by inserting after the word "cigar", in lines 93 and 94, each time it appears, the following words:- or vapor product.
And moves to further amend the bill by inserting after section 13, the following 5 new sections:-
SECTION 13A. Section 16 of chapter 62C of the General Laws, as so appearing, is hereby amended by inserting after the word "cigars", in lines 35 and 40, each time it appears, the following words:- , vapor products;
SECTION 13B. Section 67 of said chapter 62C, as so appearing, is hereby amended by inserting after the word "cigar", in lines 7, 8, 23, 33, 35, 49, 65 and 68, each time it appears, the following words:- or vapor product;
SECTION 13C. Section 68 of said chapter 62C, as so appearing, is hereby amended by inserting after the word "cigar", in line 45, the following words:- or vapor product;
SECTION 13D. Section 1 of chapter 64C of the General Laws, as amended by section 1 of chapter 157 of the acts of 2018, is hereby further amended by inserting after the word "cigarette", in line 7, the following words:- , vapor products, as defined in section 7B,.
SECTION 13F. Said section 1 of said chapter 64C, as so amended, is hereby further amended by striking out the last sentence.
And moves to further amend the bill by inserting after section 14, the following new section:-
SECTION 14A. Section 3A of said chapter 64H, as so appearing, is hereby amended by inserting after the word "cigars", in line 4, the following words:- , vapor products.
And moves to further amend the bill by inserting after section 18, the following new section:-
SECTION 18A. The General Laws are hereby amended by inserting after chapter 64N the following chapter:-
Chapter 64O.
TAXATION OF ELECTRONIC CIGARETTES
Section 1. As used in this chapter the following words shall have the following meanings:-
The words "engaged in business in the commonwealth", "person", "retail sale", "retailer", "sale", and "sales price", shall have the same meaning as in section 1 of chapter 64H.
"Commissioner'', the commissioner of revenue.
"Electronic cigarette", any electronic device, whether for one-time use or reusable, that can be used to deliver nicotine or other substances to the person inhaling from the device, including electronic cigars, electronic cigarillos, electronic pipes, electronic nicotine delivery vaping pens, hookah pens or other similar devices that rely on vaporization or aerosolization; provided, however, that "electronic cigarette" includes any component, part or accessory of a device that is used during the operation of the device, even if sold separately; provided further, however, that "electronic cigarette" shall not include a product that has been approved by the United States Food and Drug Administration for the sale of or use as a tobacco cessation product and is marketed and sold exclusively for the approved purpose.
''Electronic cigarette retailer'', any person who sells or furnishes electronic cigarettes at retail to consumers.
Section 2. An excise tax is hereby imposed upon the retail sale of electronic cigarettes by an electronic cigarette retailer at a rate of 13.75 per cent of the total sales price received by the electronic cigarette retailer as a consideration for the sale. The excise under this chapter shall be levied in addition to state tax imposed upon the sale of property or services as provided in section 2 of chapter 64H.
Section 3.
(a) Any electronic cigarette retailer engaged in business in the commonwealth shall register with the commissioner and shall file returns and pay the excise under section 2 to the commissioner at the time provided for filing a return required by section 16 of chapter 62C.
(b) The excise in section 2 shall be collected by the electronic cigarette retailer from the purchaser at the time of the sale, in a manner similar to the tax imposed under section 2 of chapter 64H.
(c) In the event that an electronic cigarette retailer fails to collect the tax from the retail purchaser, the purchaser of any electronic cigarette shall be jointly liable with the electronic cigarette retailer for the excise imposed under section 2, determined with respect to the sales price of electronic cigarettes purchased by such consumer from such retailer, provided that the purchaser receives the electronic cigarettes in the commonwealth or purchases the electronic cigarettes for use in the commonwealth. The purchaser shall pay such tax due to the commissioner in the manner of the tax imposed under section 2 of chapter 64I.
Section 4.
(a) The excise imposed under this chapter shall not apply to sales made solely for resale, provided that the transaction qualifies as a sale for resale under section 8 of chapter 64H, and provided further that the purchaser provides the electronic cigarette retailer with a resale certificate as described in said section 8 of chapter 64H.
(b) The excise imposed under this chapter shall not apply to sales made under the prescription of a physician.
Section 5. The commissioner may promulgate regulations or issue other guidance for the implementation of this chapter.
And moves to further amend the bill by inserting after section 57, the following new 2 sections:-
SECTION 57A. Sections 5A, 5B, 7A, 13A, 13B, 13C, 13D, 14A, and 18A shall take effect on January 1, 2020.
SECTION 57B. Section 13F shall take effect on July 1, 2020.