North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2281

Introduced
1/20/25  
Refer
1/20/25  
Report Pass
2/18/25  
Engrossed
2/25/25  
Refer
3/7/25  

Caption

A BILL for an Act to create and enact five new sections to chapter 57-36 of the North Dakota Century Code, relating to a tax on cigars, other tobacco products, alternative tobacco products, electronic smoking devices, and electronic smoking device substances and a tobacco tax distribution fund; to amend and reenact section 57-36-01, subsection 1 of section 57-36-31, and section 57-36-32 of the North Dakota Century Code, relating to the definition of alternative tobacco products, transfer and allocation of tobacco products tax revenue and tax on cigarettes; to provide a penalty; to provide a continuing appropriation; and to provide an effective date.

Impact

The proposed changes in SB2281 are expected to impact state laws significantly, particularly those governing tobacco taxation and public health funding. By establishing a dedicated Tobacco Tax Distribution Fund, the bill earmarks the tax revenue collected for crucial public health initiatives. It mandates that half of the revenue generated be provided as grants to local public health units, while the remainder is directed to organizations that provide crisis hotline services. This reallocation of resources is anticipated to bolster state efforts in promoting public health and managing tobacco consumption in North Dakota.

Summary

Senate Bill 2281 introduces a significant restructuring of tobacco taxation in North Dakota. The bill aims to implement an additional tax on various tobacco products, including cigars, other tobacco products, alternative tobacco products, and electronic smoking devices. Specifically, it proposes a tax rate of twenty-eight percent on the wholesale purchase price of electronic smoking devices and related substances, as well as similar rates for other tobacco categories. The bill also seeks to enhance definitions within the North Dakota Century Code related to these products, aiming for clearer guidelines regarding compliance and regulation.

Contention

Although proponents argue that the increase in taxes will deter tobacco use and support public health measures, there is a potential point of contention regarding the economic implications for businesses involved in selling these products. Critics may express concerns about the burden placed on retailers and the risk of increased illicit market activities due to higher prices resulting from new taxes. Moreover, there may be differing opinions on definitions of 'alternative tobacco products' as established in the bill and how they might affect the market dynamics for such products and electronic smoking devices.

Companion Bills

No companion bills found.

Previously Filed As

ND SB2281

A BILL for an Act to create and enact five new sections to chapter 57-36 of the North Dakota Century Code, relating to a tax on cigars, other tobacco products, alternative tobacco products, electronic smoking devices, and electronic smoking device substances and a tobacco tax distribution fund; to amend and reenact section 57-36-01, subsection 1 of section 57-36-31, and section 57-36-32 of the North Dakota Century Code, relating to the definition of alternative tobacco products, transfer and allocation of tobacco products tax revenue and tax on cigarettes; to provide a penalty; to provide a continuing appropriation; and to provide an effective date.

ND HB1570

The tax imposed on cigarettes and other tobacco products; to provide a penalty; and to provide an effective date.

ND HB1570

A BILL for an Act to create and enact a new section to chapter 50-06 and two new sections to chapter 57-36 of the North Dakota Century Code, relating to the creation of a tobacco tax distribution behavioral health fund and the collection, transfer, and report of a tax on electronic smoking devices and alternative tobacco products; to amend and reenact sections 57-36-01, 57-36-25, 57-36-26, 57-36-31, and 57-36-32 of the North Dakota Century Code, relating to the tax imposed on cigarettes and other tobacco products; to provide a penalty; and to provide an effective date.

ND HB5024

Relating to the regulation of cigarettes and tobacco products, including the definitions of cigarettes and tobacco products.

ND HB1282

Tobacco Products, Other Tobacco Products, and Electronic Smoking Devices - Advertising to Minors - Prohibition

ND H4303

Cigarettes for heating

ND SB2139

Tobacco tax; define tobacco products to include electronic smoking devices for purposes of 15% excise tax.

ND HB357

Tobacco products, heated tobacco product definition and tax provided for

ND HB2382

Concerning excise taxes on cigarettes, vapor products, and tobacco products.

ND LD1960

An Act to Exempt Electronic Smoking Devices or Other Tobacco Products Containing Ingestible Hemp from the Tax Imposed on Tobacco Products

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