AB471

Existing law imposes a tax on the receipt, purchase or sale in this State of cigarettes and other tobacco products, including, without limitation, cigars and pipe tobacco. (NRS 370.0318, 370.165, 370.350, 370.440, 370.450) Under existing law, the tax on tobacco products, other than cigarettes, is required to be paid by the wholesale dealer who purchased the products from the manufacturer and who distributes the products to a retail dealer in this State. If any tobacco products, other than cigarettes, are authorized by law to be sold directly to a consumer in this State by a person located outside this State, the tax is imposed on the person making the sale and the tax is based on the established price for which the products are sold to the consumer. (NRS 370.440, 370.450) This bill enacts provisions to provide for the taxation of the remote sale of cigars and pipe tobacco by persons who make sales of cigars and pipe tobacco through any means by which the cigars or pipe tobacco are delivered to the consumer through remote sales. Sections 2 and 3 of this bill, respectively, define the sales that constitute a remote retail sale and the sellers who are remote retail sellers for the purposes of taxing such remote retail sales of cigars and pipe tobacco. Section 3.3 of this bill requires the tax for a remote sale of cigars or pipe tobacco to be based on the actual cost of the cigars or pipe tobacco to the remote retail seller, as defined in section 1.3 of this bill. Under section 3