Senate Bill No. 244–Senator Jacobsen (by request)

February 23, 1999

____________

Referred to Committee on Taxation

 

SUMMARY—Makes various changes relating to sale of cigarettes. (BDR 32-1190)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: Yes.

~

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to taxation; prohibiting a dealer from taking certain actions regarding cigarettes manufactured for export outside the United States; prohibiting a dealer from affixing a revenue stamp or meter impression upon certain containers of cigarettes; providing a penalty; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 370 of NRS is hereby amended by adding thereto a

1-2 new section to read as follows:

1-3 1. A wholesale or retail dealer shall not affix a Nevada cigarette

1-4 revenue stamp or a metered machine impression upon a package, carton,

1-5 packet or other container of cigarettes which:

1-6 (a) Does not meet the requirements of the Federal Cigarette Labeling

1-7 and Advertising Act, 15 U.S.C. §§ 1331 et seq., for the placement of

1-8 labels, warnings or any other information required by that Act to be

1-9 placed upon a container of cigarettes sold within the United States;

1-10 (b) Is labeled as "for export only," "U.S. tax exempt," "for use outside

1-11 the U.S." or with similar wording indicating that the manufacturer did

1-12 not intend for the product to be sold in the United States;

1-13 (c) Has been altered by the unauthorized addition or removal of

1-14 wording, labels or warnings described in paragraph (a) or (b);

1-15 (d) Has been exported from the United States after January 1, 2000,

1-16 and imported into the United States in violation of 26 U.S.C. § 5754; or

1-17 (e) Violates a federal trade-mark or copyright law.

1-18 2. A wholesale or retail dealer shall not:

2-1 (a) Affix Nevada cigarette revenue stamps or metered machine

2-2 impressions on;

2-3 (b) Sell or distribute in this state; or

2-4 (c) Possess in this state with the intent to sell or distribute in this
2-5 state,

2-6 cigarettes manufactured for export outside the United States.

2-7 3. The department may impose a penalty on a wholesale or retail

2-8 dealer who violates subsection 1 or 2 as follows:

2-9 (a) For the first violation, a penalty of $5,000.

2-10 (b) For each subsequent violation, a penalty of $10,000.

2-11 4. Notwithstanding any other provision of law, the department may

2-12 seize, destroy or sell to the manufacturer, for export only, a container of

2-13 cigarettes upon which a revenue stamp or metered machine impression

2-14 was placed in violation of subsection 1 or 2.

2-15 5. As used in this section, "cigarettes manufactured for export

2-16 outside the United States" means cigarettes contained in a package or

2-17 carton which indicates that the cigarettes are tax exempt and for use

2-18 outside the United States.

2-19 Sec. 2. NRS 370.001 is hereby amended to read as follows:

2-20 370.001 As used in NRS 370.005 to 370.430, inclusive, and section 1

2-21 of this act, unless the context otherwise requires, the words and terms

2-22 defined in NRS 370.005 to 370.055, inclusive, have the meanings ascribed

2-23 to them in those sections.

2-24 Sec. 3. NRS 370.070 is hereby amended to read as follows:

2-25 370.070 The provisions of NRS 370.001 to 370.430, inclusive, and

2-26 section 1 of this act do not apply to common carriers while engaged in

2-27 interstate commerce which sell or furnish cigarettes on their trains, buses or

2-28 airplanes.

2-29 Sec. 4. The amendatory provisions of this act do not apply to

2-30 violations committed before January 1, 2000.

2-31 Sec. 5. This act becomes effective on January 1, 2000.

~