Read the full stored bill text
- 83rd Session (2025)
Assembly Bill No. 471–Assemblymembers
Hibbetts; and Nguyen
CHAPTER..........
AN ACT relating to taxation; revising provisions governing the
taxation of remote sales of cigars and pipe tobacco; revising
provisions governing the licensing of remote retail sellers of
cigars and pipe tobacco; revising provisions governing age
verification for remote reta il sales of certain tobacco
products; providing penalties; making an appropriation; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
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 l ocated 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 th e 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 3.3, a remote retail
seller is subject to this tax only if the remote retail seller meets certain thresholds
for the retail sale of cigars or pipe tobacco to consumers in this State. Section 3.4 of
this bill provides for the filing of a monthly report of the sales of cigars and pipe
tobacco by a remote retail seller in a manner similar to the monthly report for a
wholesale dealer of such products, and section 3.5 of this bill imposes
recordkeeping requirements on a remote retail seller of cigars and pipe tobacco that
are similar to the recordkeeping requirements for a wholesale dealer of such
products. Sections 3.6-3.9 of this bill provide for the licensing of remote retail
sellers of cigars and pipe tobacco in the same manner as wholesale dealers of such
products. Specifically: (1) section 3.65 prohibits the issuance, maintenance or
renewal of a license if the applicant or licensee is not registered to collect and remit
sales and use tax, is delinquent in the payment of sales and use tax or the tax
imposed by section 3.3 , or does not comply with certain age -verification
requirements; (2) section 3.8 imposes the same fees for a license that are imposed
on similar tobacco licensees; and (3) section 3.9 imposes the same bonding
requirements that are imposed on similar tobacco licensees. Section 7 of this bill
clarifies requirements for wholesale dealers of tobacco products, other than
cigarettes, to maintain an inventory of such products by providing that such
inventory must be maintained at each location in this State at which the wholesaler
maintains a place of business. Section 12.5 of this bill makes a remote retail seller
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subject to the penalties that apply under existing law to delinquency in the payment
of taxes on tobacco products. (NRS 370.523) Section 20 of this bill makes a
conforming ch ange to align with existing requirements for the use of an
independent, third-party age verification service by remote retail sellers of certain
tobacco products. Section 20.5 of this bill makes a conforming change to ensure
premium cigars sold to a remote retail seller are taxed in the same manner as
premium cigars sold by other retail sellers in this State. Section 20.7 of this bill
makes an appropriation to the Department of Taxation for certain costs to
implement the provisions of this bill.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 370 of NRS is hereby amended by adding
thereto the provisions set forth as sections 1.1 to 3.9, inclusive, of
this act.
Sec. 1.1. As used in sections 1. 1 to 3.9, inclusive, of this act,
unless the context otherwise requires, the words and terms defined
in sections 1. 3 to 3 .2, inclusive, of this act have the meanings
ascribed to them in those sections.
Sec. 1.3. “Actual cost” means the actual price paid by a
remote retail seller for an individual stock keeping unit of cigars
or pipe tobacco.
Sec. 1.5. “Actual cost list price” means the average of the
price paid by a remote retail seller for a stock keeping unit over
the 12 calendar months immediately preceding January 1 of the
year in which a remote retail sale is made by a remote retail seller.
Sec. 1.7. “Cigar” means any roll of tobacco wrapped in leaf
tobacco or in any substance containing tobacco, other than a
cigarette, as defined in NRS 370.010.
Sec. 1.8. “License” means a licen se issued pursuant to
section 3.6 of this act that authorizes the holder of the license to
engage in business as a remote retail seller.
Sec. 1.85. “Licensee” means the holder of a license.
Sec. 1.9. “Pipe tobacco” means any tobacco which, because
of its appearance, type, packaging or labeling, is suitable for use
and likely to be offered to, or purchased by, ultimate consumers as
tobacco to be smoked in a pipe.
Sec. 2. “Remote retail sale” means a sale of a cigar or pipe
tobacco to an ultimate consumer in this State for which:
1. The ultimate consumer submits the order for the sale by
means of a telephonic or other method of voice tra nsmission, the
mail or the Internet or any other on -line service, or the seller is
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otherwise not in the physical presence of the buyer when the
request for purchase or order is made; or
2. The cigar or pipe tobacco is delivered by common carrier,
private delivery service or other method of remote delivery, or the
seller is not in the physical presence of the buyer when the buyer
obtains possession of the cigars or pipe tobacco.
Sec. 3. “Remote retail seller” means a person located within
or outside the borders of this State who makes a remote retail sale
of a cigar or pipe tobacco to ultimate consumers in this State.
Sec. 3.1. “Sale” means any transfer, exchange, barter, gift,
offer for sale or distribution for consideration of other tobacco
products.
Sec. 3.15. “Stock keeping unit” means the unique identifier
assigned by the distributor or remote retail seller to an item for the
purpose of tracking inventory.
Sec. 3.2. “Ultimate consumer” has the meaning ascribed to it
in NRS 370.440.
Sec. 3.25. (Deleted by amendment.)
Sec. 3.3. 1. Except as otherwise provided in this section,
there is hereby imposed upon the receipt, purchase or sale of
cigars and pipe tobacco sold by a remote retail seller to an ultimate
consumer in this State:
(a) For cigars and pipe tobacco that are not premium cigars, a
tax of 30 percent of the actual cost of those products; and
(b) For cigars and pipe tobacco that are premium cigars, a tax
of 30 percent of the actual c ost of those products except that, if 30
percent of the actual cost of those products is:
(1) Greater than 50 cents for each premium cigar, the tax
imposed shall be 50 cents for each premium cigar.
(2) Less than 30 cents for each premium cigar, the tax
imposed shall be 30 cents for each premium cigar.
2. The tax is imposed at the time the remote retai l seller
makes a remote retail sale to an ultimate consumer in this State.
The tax must be paid by the remote retail seller to the Department
in accordance with the provisions of section 3.4 of this act. It is the
intent and purpose of this section to impo se the tax once and only
once on cigars and pipe tobacco sold in this State.
3. The tax is imposed on a remote retail seller only if, during
the current calendar year or the immediately preceding calendar
year:
(a) The cumulative gross receipts of the r emote retail seller
from remote retail sales of cigars or pipe tobacco, or both, by the
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remote retail seller to ultimate consumers in this State exceed
$100,000; or
(b) The remote retail seller makes 200 or more separate remote
retail sales of cigars or p ipe tobacco, or both, to ultimate
consumers in this State.
4. Any remote retail seller who makes a remote retail sale of
cigars or pipe tobacco to an ultimate consumer in this State
without paying the tax provided for by this section is guilty of a
misdemeanor.
5. As used in this section, “premium cigar” means a cigar
that is rolled by hand, has a wrapper made of whole tobacco leaves
and does not have a filter or mouthpiece.
Sec. 3.4. 1. A remote retail seller shall, not later than 20
days after the end of each month, submit to the Department a
report setting forth such information as the Department may
prescribe concerning cigars and pipe tobacco on which the tax
provided by section 3.3 of this act was imposed during the
preceding calendar month. The report must include, without
limitation, information concerning:
(a) All cigars and pipe tobacco brought into this State from
outside this State, or caused to be brought into this State from
outside this State, by the rem ote retail seller, or shipped or
transported from within or outside this State to ultimate
consumers in this State by the remote retail seller, during the
preceding calendar month; and
(b) The actual cost and actual cost list price for each stock
keeping unit for the preceding calendar month.
2. Each report submitted pursuant to this section must be
accompanied by the tax owed pursuant to section 3.3 of this act for
cigars and pipe tobacco on which that tax was imposed during the
previous month.
Sec. 3.5. 1. Every remote retail seller shall keep at the
principal place of business identified on the license issued to the
remote retail seller complete and accurate records relating to
remote retail sales to ultimate consu mers in this State, including
invoices indicating the actual cost or actual cost list price paid by
the remote retail seller for each sto ck keeping unit. The invoices
required by this subsection must contain:
(a) The name and address of the remote retail seller who sold
the cigars or pipe tobacco;
(b) The name and address of the ultimate consumer in this
State who purchased the cigars or pipe tobacco;
(c) The date of the sale;
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(d) The invoice number;
(e) The method of delivery; and
(f) The itemized qu antity of each brand, type, quantity and
price of cigar and pipe tobacco sold.
2. Every remote retail seller shall preserve for at least 5 years
after the date of the sale to the ultimate consumer in this State or
the date of the last entry made on the record, whichever is later.
Sec. 3.6. 1. A person shall not engage in business as a
remote retail seller unless the person first secures a license to
engage in that activity from the Department.
2. An application for a license must:
(a) Be made to the Department on forms prescribed by the
Department.
(b) Include the name and address of the applicant. If the
applicant is a firm, association or partnership, the application
must include the name and address of each of it s members. If the
applicant is a corporation, the application must include the names
and addresses of the president, vice president, secretary and
managing officer or officers.
(c) Specify the location, by street and number, of the principal
place of business of the applicant.
(d) Specify the location, by street and number, of any place
used by the applicant to distribute, ship, warehouse or store cigars
and pipe tobacco and for which the license is sought.
(e) Specify any other information the Department may require
to carry out the provisions of this chapter.
(f) Be accompanied by the required license fee.
(g) Be accompanied by a certified copy of the certificate
required by NRS 602.010 or any renewal certificate required by
NRS 602.035.
3. A license as a remote retail seller authorizes the holder
thereof to make remote retail sales of cigars and pipe tobacco from
the premises for which the license was issued to any ultimate
consumer in this State.
Sec. 3.65. No license as a remote retail seller may be issued,
maintained or renewed if:
1. The provisions of chapter 372 or 374 of NRS, or any
regulations adopted pursuant thereto, require the applicant or
licensee to impose, collect and remit sales tax, or col lect and remit
use tax, and the applicant or licensee:
(a) Is not registered with the Department pursuant to NRS
360B.200 or does not hold a valid permit for each place of
business of the applicant pursuant to NRS 360.5971; or
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(b) Is delinquent in the pa yment of any such tax, or any
penalty or imposed by the Department for delinquent payment of
such tax.
2. The applicant or licensee is:
(a) Required by section 3.3 of this act to pay tax on the receipt,
purchase or sale of cigars or pipe tobacco to an ultimate consumer
in this State; and
(b) Delinquent in the payment of any such tax, or any penalty
or interest imposed by the Department for delinquent payment of
such tax.
3. The applicant or licensee d oes not provide for age
verification through an in dependent, third -party age verification
service that compares information available from a commercially
available database, or aggregate of such databases, that are
regularly used by governmental agencies and businesses for the
purposes of age and identity verification to the personal
information entered by the person during the ordering process to
establish that the person is over the age of 21 years.
Sec. 3.7. 1. Each holder of a license shall include the
license information on the Internet website of the licensee.
2. Licenses are nontransferable, except that upon prior
written notice to the Department the location of the premises for
which the license was issued may be changed.
Sec. 3.8. 1. Each license issued by the Department is valid
only for the calendar year for which it is issued and must be
renewed annually.
2. The Department shall charge an annual license fee of
$650 for a license as a remote retail seller of cigars and pipe
tobacco.
3. If a license is issued at any time during the year other than
on January 1, except for the renewal of a delinquent license
pursuant to subsection 5, the licensee shall pay a proportionate
part of the annual fe e for the remainder of the year, but not less
than 25 percent of the annual license fee.
4. The fees for a license are due and payable on January 1 of
each year. If the annual license fee is not paid by January 15, the
license is cancelled automatically.
5. A license which is cancelled for nonpayment of the annual
license fee may be renewed at any time by the payment of the fee
plus a 5 percent penalty thereon.
Sec. 3.85. 1. After notice to the licensee and a hearing as
prescribed by the Department, the Department may suspend or
revoke a license if the licensee:
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(a) Fails to file a report or certification required by this
chapter or files an incomplete or inaccurate report or certification
required by this chapter;
(b) Fails to pay any tax owed upon cigars or pipe tobacco
required by this chapter;
(c) Sells in this State, purchases or possesses any cigars or pipe
tobacco in violation of any provision of this chapter;
(d) Imports into or exports from this State any cigars or pipe
tobacco in violation of any provision of this chapter; or
(e) Otherwise violates, or causes or permits to be violated, the
provisions of this chapter or any regulation adopted thereunder.
2. Except as otherwise provided in subsection 4, t he
Department, upon a finding that the licensee has knowingly or
negligently failed to comply with any provision of this chapter or
any regulation adopted by the Commission, may:
(a) Impose on the licensee a civil penalty pursuant to
NRS 370.523;
(b) In the case of a first violation of a provision of this chapter
or any regulation adopted by the Commission, suspend the license
of the licensee for not more than 60 consecutive calendar days;
(c) In the case of a second or subsequent violation of the same
provision of this chapter or any regulation adopted by the
Commission, suspend the license of the licensee for not more than
180 consecutive calendar days or permanently revoke the license
of the licensee; or
(d) Take any combination of the actions author ized by
paragraphs (a), (b) and (c).
3. A person whose license has been suspended or revoked
shall not purchase or sell cigars or pipe tobacco to be sold during
the period of suspension or revocation:
(a) On the premises in this State occupied or contro lled by the
person; or
(b) From any premises located outside this State if the cigars
or pipe tobacco are purchased or sold for distribution in this State.
4. The expiration, transfer, surrender, continuance, renewal
or extension of a license issued pur suant to this chapter does not
bar or abate any disciplinary proceedings or action.
5. The Department shall permanently revoke the license of
any licensee who knowingly or negligently:
(a) Sells or otherwise disposes of cigars or pipe tobacco that
are in the constructive possession of the Department; or
(b) Is convicted of any felony relating to the manufacture,
distribution or sale of cigars or pipe tobacco.
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6. In determining the penalty to be imposed on a licensee for
a violation of paragraph (a) of subsection 1, the Department shall
consider:
(a) The documented reporting and discipline record of the
licensee with the Department from the immediately preceding 24
months;
(b) The timeliness of the licensee in correcting any inaccurate
information included in a report or certification required by this
chapter;
(c) The efforts of the licensee to provide an explanation of the
reason for any inaccurate information included in a report or
certification required by this chapter or the basis for the omissio n
of information from such a report or certification;
(d) Any remedial measures initiated by the licensee to prevent
future violations of a similar nature; and
(e) Any other mitigating factors offered by the licensee or
aggravating or mitigating factors identified by the Department.
7. For the purposes of this section, a report or certification
required by this this chapter is:
(a) Inaccurate if the report or certification does not correctly
record factual information or there is a discrepancy in the
information included in the report or certification and the factual
information.
(b) Incomplete if the report or certification does not include all
necessary or responsive information.
8. The Department shall adopt regulations establishing a
procedure for the suspension and revocation of any license issued
pursuant to sections 1.1 to 3.9, inclusive, of this act.
Sec. 3.9. 1. Except as otherwise provided in this section,
each licensed remote retail seller shall furnish a bond executed by
the remote retail seller as principal, and by a corporation qualified
under the laws of this State as surety, pa yable to the State of
Nevada and conditioned upon the payment of all excise taxes
required to be precollected by the remote retail seller pursuant to
the provisions of sections 1.1 to 3.9, inclusive, of this act. Each
bond must be in a principal sum equal to the largest amount of tax
precollected by the remote retail seller in any quarter of the
preceding year. If the information to establish that amount is not
available, then the bond must be in a sum required from a licensee
operating under conditions deemed comparable by the
Department. No bond may be for less than $1,000. When cash is
used, the amount must be rounded up to the next larger integral
multiple of $100.
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2. Upon application and a satisfactory showing, the
Department may increase or decrea se the amount of a bond
required by subsection 1, based on the record of taxes remitted by
the remote retail seller.
3. The Department may waive the requirement of the bond
required by subsection 1 whenever a licensed remote retail seller
has maintained a satisfactory record of payment of excise taxes or
deferred payments, respectively, for a period of 5 consecutive
years.
4. A remote retail seller is not entitled to a refund of any
portion of money paid as a bond pursuant to this section if the
remote retail seller has failed to file a report required by this
chapter or owes the Department any fee, payment or penalty.
Sec. 4. NRS 370.0318 is hereby amended to read as follows:
370.0318 “Other tobacco product” [means any tobacco of any
description, any vapor product, any alternative nicotine product or
any product made from tobacco, other than cigarettes. ] has the
meaning ascribed to it in NRS 370.440.
Sec. 5. NRS 370.054 is hereby amended to read as follows:
370.054 “Vapor product”:
1. Means any noncombustible product containing nicotine or
any other substance that employs a heating element, power source,
electronic circuit or other electronic, chemical or mechanical means,
regardless of the shape or size thereof, that can be used to produce
vapor from nicotine or any other substance in a solution , [or other
form,] the use or inhalation of which simulates smoking.
2. Includes, without limitation:
(a) An electronic cigarette, cigar, cigarillo, pipe, hookah, or vape
pen, or a similar product or device; and
(b) The components of such a product or device, whether or not
sold separately, including, without limitation, vapor cartridges or
other container of nicotine or any other substance in a solution or
other form that is intended to be used with or in an electronic
cigarette, cigar, cigarillo, pipe, hookah, or vape pen, or a similar
product or device, atomizers, cartomizers, digital displays,
clearomizers, tank systems, flavors, programmable software or other
similar products or devices. As used in this paragraph, “component”
means a product intended primarily or exclusively to be used with or
in an electronic cigarette, cigar, cigarillo, pipe, hookah, or vape pen,
or a similar product or device.
3. Does not include any product:
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(a) Regulated by the United States Food and Drug
Administration pursuant to subchapter V of the Federal Food, Drug,
and Cosmetic Act, 21 U.S.C. §§ 351 et seq.
(b) Subject to the excise tax on cannabis or canna bis products
pursuant to NRS 372A.200 to 372A.380, inclusive.
(c) Purchased by a person who holds a current, valid medical
cannabis establishment license pursuant to chapter 678B of NRS.
Sec. 6. NRS 370.440 is hereby amended to read as follows:
370.440 As used in NRS 370.440 to 370.503, inclusive, unless
the context otherwise requires:
1. “Alternative nicotine product” has the meaning ascribed to it
in NRS 370.008.
2. “Other tobacco product” [has the meaning ascr ibed to it in
NRS 370.0318.
3.] means any tobacco of any description, any vapor product,
any alternative nicotine product or any product made or derived
from tobacco, other than cigarettes.
3. “Retail dealer” means any person who is engaged in selling
other tobacco products to ultimate consumers. The term does not
include a remote retail seller, as defined in section 3 of this act.
4. “Sale” means any transfer, exchange, barter, gift, offer fo r
sale, or distribution for consideration of other tobacco products.
5. “Ultimate consumer” means a person who purchases one or
more other tobacco products for his or her household or personal use
and not for resale.
6. “Vapor product” has the meaning ascribed to it in
NRS 370.054.
7. “Wholesale dealer of other tobacco products” [means] :
(a) Means any person who:
[(a)] (1) Maintains a place of business in this State, purchases
other tobacco products from the manufacturer or a wholesale dealer
and possesses, receives, sells or otherwise disposes of such other
tobacco products to wholesale dealers or retail dealers within this
State;
[(b)] (2) Does not maintain a place of business in this State and
sells or oth erwise disposes of other tobacco products by any means
[, including, without limitation, through an Internet website, ] to
wholesale dealers [,] or retail dealers [or ultimate consumers] within
this State; or
[(c)] (3) Manufactures, produces, fabricates, a ssembles,
processes, labels or finishes other tobacco products within this State.
(b) Does not include a remote retail seller, as defined in
section 3 of this act.
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[7.] 8. “Wholesale price” means:
(a) Except as otherwise provided in paragraph (b), the price for
which other tobacco products are sold to a wholesale dealer of other
tobacco products, valued in money, whether paid in money or
otherwise, without any discount or other reduction on account of
any of the following:
(1) Trade discounts, cash d iscounts, special discounts or
deals, cash rebates or any other reduction from the regular sales
price;
(2) The cost of materials used, labor or service cost, interest
charged, losses or any other expenses;
(3) The cost of transportation of the other t obacco products
before its purchase by the wholesale dealer of other tobacco
products;
(4) Any services that are a part of the sale, including, without
limitation, shipping, freight, warehousing, customer service,
advertising or any other service related to the sale; or
(5) The amount of any tax, not including any excise tax,
imposed by the United States upon or with respect to the other
tobacco product.
(b) For other tobacco products sold to a retail dealer [or an
ultimate consumer] by a wholesale dea ler of other tobacco products
described in paragraph (c) of subsection [6,] 7, the established price
for which the other tobacco product is sold to the retail dealer [or
ultimate consumer] before any discount or other reduction is made.
Sec. 7. NRS 370.447 is hereby amended to read as follows:
370.447 Each person licensed as a wholesale dealer of other
tobacco products shall keep on hand at all times other tobacco
products of a wholesale value of at least $5,000 [.] at each location
in this State at which the wholesale dealer maintains a place of
business.
Sec. 8. (Deleted by amendment.)
Sec. 9. NRS 370.465 is hereby amended to read as follows:
370.465 1. A wholesale dealer of other tobacco products
shall, not later than 20 days after the end of each month, submit to
the Department a report on a form prescribed by the Department
setting forth such information as the Department may prescribe
concerning other tobacco products on which the tax provided by
NRS 370.450 was imposed during the [previous] preceding
calendar month.
2. Each report submitted pursuant to this section [on or after
August 20, 2001,] must be accompanied by the tax owed pursuant to
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NRS 370.450 for other tobacco products on which that tax was
imposed during the previous month.
Sec. 10. (Deleted by amendment.)
Sec. 11. NRS 370.490 is hereby amended to read as follows:
370.490 1. The Department shall allow to a wholesale dealer
of other tobacco products a credit of the amount of the tax paid
pursuant to NRS 370.450, not including any amount of the tax
retained by the wholesale dealer [of other tobacco products] to cover
the costs of collecting and administering the tax, for other tobacco
products that may no longer be sold. If the other tobacco products
have been purchased and delivered, a credit memo of the
manufacturer is required for proof of returned merchandise.
2. A credit must also be granted for any other tobacco products
shipped from this State and destined for retail sale and consumption
outside the State on which the tax has previously been paid. A
duplicate or copy of the invoice is required for p roof of the sale
outside the State.
3. A wholesale dealer of other tobacco products may claim a
credit by filing with the Department the proof required by this
section. The claim must be made on a form prescribed by the
Department.
Sec. 12. (Deleted by amendment.)
Sec. 12.5. NRS 370.523 is hereby amended to read as follows:
370.523 In addition to any other penalty authorized by law:
1. The Department may impose on each person who violates
any of the provisions of this chapter a civil penalty of:
(a) Not more than $1,000 for the first violation of a provision;
and
(b) Not more than $5,000 for each subsequent violation of the
same provision.
2. Each violation of any provision of this chapter is considered
a separate violation.
3. Any person who fails to pay any tax imposed pursuant to the
provisions of NRS 370.090 to 370.327, inclusive, or 370.440 to
370.503, inclusive, or section s 1.1 to 3.9, inclusive, of this act
within the t ime prescribed by law or regulation shall, in addition to
the tax due:
(a) For a first such failure, pay a penalty of 10 percent of the tax
due but unpaid, in addition to the tax. In addition to the penalty, the
Department may suspend or revoke the licens e of the licensee who
failed to pay the tax.
(b) For a second such failure in a 24 -month period, pay a
penalty of 25 percent of the amount of tax due but unpaid. In
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addition to the penalty, the Department may suspend or revoke the
license of the licensee who failed to pay the tax.
(c) For a third and each subsequent such failure in a 24 -month
period, pay a penalty of 25 percent of the amount of tax due but
unpaid. In addition to the penalty, the Department shall suspend or
revoke the license of the licensee who failed to pay the tax.
Sec. 13. NRS 370.551 is hereby amended to read as follows:
370.551 “Other tobacco product” has the meaning ascribed to
it in NRS [370.0318.] 370.440.
Secs. 14-19. (Deleted by amendment.)
Sec. 20. NRS 202.24935 is hereby amended to read as
follows:
202.24935 1. It is unlawful for a person to knowingly sell or
distribute cigarettes, cigarette paper, products containing, made or
derived from tobacco, vapor products, alternative nicotine products
or products containing, made or derived from nicotine to a person
under the age of 21 years through the use of a com puter network,
telephonic network or other electronic network.
2. Every person who sells or distributes cigarettes, cigarette
paper, products containing, made or derived from tobacco, vapor
products, alternative nicotine products or products containing, made
or derived from nicotine to an ultimate consumer in this State
through the use of a computer network, telephonic network or
electronic network shall:
(a) Ensure that the packaging or wrapping of the items when
they are shipped is clearly marked with the word “cigarettes” or, if
the items being shipped are not cigarettes, the words “tobacco
products,” “vapor products” or “nicotine products,” as applicable.
(b) Obtain the full name, date of birth and residential address of
the purchaser and perform an age verification through an
independent, third -party age verification service that compares
information available from [public records ] a commercially
available database, or aggregate of such databases, that are
regularly used by governmental agencies and businesses for the
purposes of age and identity verification to the personal
information entered by the person during the ordering process [that
establishes] to establish that the person is over the age of 21 years.
3. Every person who makes sales as described in subsection 2
must certify annually to the Attorney General that the person uses an
independent, third -party age verification service as described in
paragraph (b) of subsection 2.
4. In addition to or in lieu of any other civil or criminal remedy
provided by law, a person who violates this section is subject to:
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(a) A civil penalty in an amount not more than $1,000 for each
violation; and
(b) The suspension or revocation of the license of the person by
the D epartment of Taxation, if the person is licensed pursuant to
chapter 370 of NRS.
5. Any violation of subsection 2 constitutes a deceptive trade
practice for the purpose of NRS 598.0903 to 598.0999, inclusive.
6. For the purposes of this section, any sale of cigarettes,
cigarette paper, products containing, made or derived from tobacco,
vapor products, alternative nicotine products or products containing,
made or derived from nicotine to a natural person in thi s State who
does not intend to resell the item constitutes a sale to an ultimate
consumer.
Sec. 20.5. Section 3.3 of this act is hereby amended as
follows:
Sec. 3.3. 1. Except as otherwise provided in this
section, there is hereby imposed upon the receipt, purchase or
sale of cigars and pipe tobacco sold by a remote retail seller
to an ultimate consumer in this State [:
(a) For cigars and pipe tobacco that are not pr emium
cigars,] a tax of 30 percent of the actual cost of those products
. [; and
(b) For cigars and pipe tobacco that are premium cigars, a
tax of 30 percent of the actual cost of those products except
that, if 30 percent of the actual cost of those products is:
(1) Greater than 50 cents for each premium cigar, the
tax imposed shall be 50 cents for each premium cigar.
(2) Less than 30 cents for each premium cigar, the tax
imposed shall be 30 cents for each premium cigar.]
2. The tax is imposed at the time the remote retail seller
makes a remote retail sale to an ultimate consumer in this
State. The tax must be paid by the remote retail seller to the
Department in accordance with the provisions of section 3.4
of this act. It is the intent and purpose o f this section to
impose the tax once and only once on cigars and pipe tobacco
sold in this State.
3. The tax is imposed on a remote retail seller only if,
during the current calendar year or the immediately preceding
calendar year:
(a) The cumulative g ross receipts of the remote retail
seller from remote retail sales of cigars or pipe tobacco, or
both, by the remote retail seller to ultimate consumers in this
State exceed $100,000; or
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(b) The remote retail seller makes 200 or more separate
remote retai l sales of cigars or pipe tobacco, or both, to
ultimate consumers in this State.
4. Any remote retail seller who makes a remote retail
sale of cigars or pipe tobacco to an ultimate consumer in this
State without paying the tax provided for by this section is
guilty of a misdemeanor.
[5. As used in this section, “premium cigar” means a
cigar that is rolled by hand, has a wrapper made of whole
tobacco leaves and does not have a filter or mouthpiece.]
Sec. 20.7. 1. There is hereby appropriated from the State
General Fund to the Department of Taxation for personnel and
associated costs, including computer equipment and software and
overtime, associated with carrying out the provisions of this act the
following sums:
For the Fiscal Year 2025-2026 .................................. $206,369
For the Fiscal Year 2026-2027 .................................. $206,253
2. Any balance of the sums appropriated by subsection 1
remaining at the end of the respective fiscal years must not be
committed for expenditure after June 30 of the respectiv e fiscal
years by the entity to which the appropriation is made or any entity
to which money from the appropriation is granted or otherwise
transferred in any manner, and any portion of the appropriated
money remaining must not be spent for any purpose aft er
September 18, 2026, and September 17, 2027, respectively, by
either the entity to which the money was appropriated or the entity
to which the money was subsequently granted or transferred, and
must be reverted to the State General Fund on or before
September 18, 2026, and September 17, 2027, respectively.
Sec. 21. 1. This section becomes effective upon passage and
approval.
2. Sections 1 to 20, inclusive, of this act become effective:
(a) Upon passage and approval for the purpose of adopting any
regulations and performing any other preparatory administrative
tasks that are necessary to carry out the provisions of this act; and
(b) On January 1, 2026, for all other purposes.
3. Section 20.7 of this act becomes effective July 1, 2025.
4. Section 20.5 of this act becomes effective July 1, 2027.
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