The Cigarette Tax was amended effective July 15, 2006. The rate increase is 17.5 cents per pack for a total of $2.575 per pack of 20 cigarettes.
The Tobacco Products Wholesale Tax was amended to impose a separate tax upon the sale, use or distribution of moist snuff within this State by a distributor or wholesaler to a retail dealer or consumer at the rate of $0.75 per ounce on the net weight, as listed by the manufacturer of the moist snuff, and a proportionate rate on all fractional parts of an ounce of the net weight of moist snuff.
Moist snuff is defined as any finely cut, ground or powdered smokeless tobacco that is intended to be placed or dipped in the oral cavity, but does not include dry snuff.
The $0.75 per ounce tax on the net weight of moist tobacco is to be paid and collected in a manner similar to the 30% Tobacco Products Wholesale Tax on other tobacco products and is simply a change in amount of tax assessed from a tax based on price to a tax based on weight.
The tax on moist snuff will be effective at 12:01 am on August 1, 2006.
A floor tax inventory on moist snuff already in a retail dealer’s possession will occur on July 31, 2006 at the close of business and the floor tax return and payment will be due September 20, 2006.