Representatives in the North Dakota House rejected a bill Wednesday (March 12) that would raise taxes on nicotine products with the funds earmarked for a tobacco distribution fund. Senate Bill 2281 would have raised taxes on cigarettes by 25 cents a pack and levied higher taxes on vapes, chewing tobacco, and other nicotine products.
The bill had passed in the Senate, but this week the House Finance and Taxation Committee took a closer look at the idea and said in some cases tobacco goods could be taxed twice and create larger black market sales.
“If a tax policy was bad last month, it’s still bad today,” Rep. Ty Dressler said. “Senate Bill 2281 implements a large tax increase and a regressive one at that. Most of the impact falls on those that can afford it the least. It may harm retailers, increase black market trade, and weaken economic growth.”
