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Tag: North Dakota

  • North Dakota Rejects Tobacco Tax Increase

    North Dakota Rejects Tobacco Tax Increase

    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.”

  • North Dakota Votes to Up Taxes on All Nicotine Products

    North Dakota Votes to Up Taxes on All Nicotine Products

    The North Dakota Senate voted 26-21 Monday to raise taxes on tobacco and alternative products. Senate Bill 2281 would raise North Dakota’s cigarette tax from 44 cents per pack to 69 cents, and also impose a 31% tax on the wholesale purchase of cigars and a 28% tax on the wholesale purchase of alternative products.

    North Dakota has not raised taxes on cigarettes in over 30 years and this increase would move the state from the third-lowest to the 10th-lowest state cigarette taxes in the nation. The increases would be used to establish a Tobacco Tax Distribution Fund, which would be slated to provide an estimated $12.9 million in grants to local public health units and $12 million to organizations providing 988 crisis hotline services.

    The bill previously received a 5-1 recommendation to pass from the Senate Finance and Taxation Committee, and now must pass the House and receive the governor’s signature to become law.