SUMMARY--Revises provisions relating to cigarettes and other products made from tobacco. (BDR 32-943)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to tobacco products; revising the formula for the calculation of the basic cost of cigarettes to a wholesale dealer to include the dealer's fixed costs of doing business; prohibiting a retail dealer from selling or offering to sell certain products made from tobacco which have not been purchased from a wholesale dealer; requiring a wholesale dealer to provide certain information to the department of taxation concerning purchases of certain products made from tobacco; requiring a manufacturer who sells certain tobacco products to a wholesale dealer in this state to provide to the department of taxation an invoice for each sale; 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:
Section 1 Chapter 370 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.
Sec. 2 A person may engage in the business of a wholesale dealer or a retail dealer in this state, but not both.
Sec. 3 1. It is unlawful for a retail dealer to sell or offer to sell any products made from tobacco, other than cigarettes, which have not been purchased from a wholesale dealer.
2. A person who violates any of the provisions of this section is guilty of a misdemeanor.
Sec. 4 Each manufacturer who sells products made from tobacco, other than cigarettes, to a wholesale dealer in this state shall, at or before the time those products are delivered into this state, mail to the department a copy of the invoice he is required to provide to the wholesale dealer pursuant to NRS 370.470. The department shall maintain a record of the invoices for not less than 3 years after the receipt thereof.
Sec. 5 1. A wholesale dealer shall, not later than 5 days after the end of each month, submit to the department:
(a) A list setting forth each purchase of products made from tobacco, other than cigarettes, that he made during the previous month; and
(b) A copy of the invoice for each such purchase that is required to be provided to him pursuant to NRS 370.470.
2. The department may impose a fine on a wholesale dealer who violates any of the provisions of subsection 1 as follows:
(a) For the first violation, a fine of $500.
(b) For a second violation, a fine of $1,000.
(c) For a third or subsequent violation, a fine of $5,000.
Sec. 6 NRS 370.005 is hereby amended to read as follows:
370.005"Basic cost of cigarettes" means the sum of:
1. The amount of manufacturer's invoice cost of cigarettes by carton to the wholesale dealer in the quantity last purchased, less all allowances in an amount not exceeding 2.5 percent of the invoice cost of cigarettes by carton, plus the full value of any cigarette revenue stamps that are affixed to the packages, packets or containers of cigarettes, if not included in the invoice cost of cigarettes by carton [.] ; and
2. An amount equal to 5.5 percent of the amount calculated pursuant to paragraph (a) which shall be deemed the wholesale dealer's fixed costs of doing business.
Sec. 7 NRS 370.440 is hereby amended to read as follows:
370.440As used in NRS 370.440 to 370.503, inclusive, and sections 2 to 5, inclusive, of this act unless the context otherwise provides:
1. "Retail dealer" means any person other than a wholesale dealer who is engaged in selling products made from tobacco, other than cigarettes, to customers.
2. "Sale" means any transfer, exchange, barter, gift, offer for sale, or distribution for consideration of products made from tobacco, other than cigarettes.
3. "Wholesale dealer" means any person who purchases products made from tobacco, other than cigarettes, directly from the manufacturer or who purchases those products from any other person who purchases them from the manufacturer to sell to retail dealers and who serves retail outlets from an established place of business including, but not limited to, the maintenance of a warehouse for the storage and distribution of those products.
4. "Wholesale price" means the established price for which a manufacturer sells a product made from tobacco, other than cigarettes, to a wholesale dealer before any discount or other reduction is made.
Sec. 8 NRS 370.470 is hereby amended to read as follows:
370.470The wholesale dealer must procure from each manufacturer itemized invoices of all products made from tobacco, other than cigarettes, purchased from and delivered by that manufacturer. The wholesale dealer must obtain from the manufacturer separate invoices for each purchase made. The invoice must [show the] include:
1. The name and address of the manufacturer [, the] ;
2. The name and address of the wholesale dealer;
3. The date of the purchase [and the] ; and
4. The quantity and wholesale price [.] of those products.
Sec. 9 The amendatory provisions of this act do not apply to offenses that are committed before July 1, 1997.
Sec. 10 The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 11 This act becomes effective on July 1, 1997.