AB536

Existing law imposes an excise tax on the purchase or possession of cigarettes at the rate of $1.80 cents per pack of 20 cigarettes. (NRS 370.165) Existing law also imposes an excise tax on the receipt, purchase or sale of other tobacco products, other than cigarettes, in this State. (NRS 370.450) For the purposes of such taxes, a cigarette is defined as rolled tobacco, or tobacco substitute, that is wrapped in paper or a substitute for paper that is not tobacco. (NRS 370.010) Section 4 of this bill decreases the excise tax on cigarettes to $0.90 cents per pack of 20 cigarettes if: (1) the cigarettes are intended to be heated but not burned under ordinary conditions of use; (2) the United States Food and Drug Administration has approved the product to be commercially marketed and distributed in interstate commerce as a modified risk tobacco product; and (3) the most recent postmarket surveillance and study conducted for the product in accordance with federal law indicates that less than 5 percent of persons under the age of 18 years have used the product. Section 1 of this bill provides that tobacco that is rolled in paper and intended to be heated but not burned under ordinary conditions of use is considered a cigarette for the purposes of licensing and taxation in this State. Section 3 of this bill provides that such a cigarette, and any device used to heat the tobacco in the cigarette is not a vapor product for the purposes of licensing and taxation because such a product