THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY DINNIMAN, LEACH, COSTA, ERICKSON, FONTANA, HUGHES, TARTAGLIONE AND BREWSTER, JUNE 3, 2011

REFERRED TO FINANCE, JUNE 3, 2011  

AN ACT

Imposing a tax on smokeless tobacco; and providing for

definitions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Smokeless

Tobacco Tax Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Smokeless tobacco."  A product containing finely cut,

ground, powdered, blended or leaf tobacco made primarily for

individual consumption which is intended to be placed in the

oral or nasal cavity and not intended to be smoked. The term

includes chewing tobacco, dipping tobacco and snuff.

"Smokeless tobacco distributor or wholesaler."  A person

engaged in the business of selling smokeless tobacco that sells,

exchanges or distributes smokeless tobacco to retailers,

consumers or other wholesalers or distributors in this

Commonwealth. The term includes a smokeless tobacco manufacturer

that has within this Commonwealth any office, sales house or

other place of business.

"Wholesale price."  The price for which a smokeless tobacco

manufacturer sells smokeless tobacco to a smokeless tobacco

distributor or wholesaler, exclusive of any discount, rebate or

other reduction.

Section 3.  Imposition and rate of tax on smokeless tobacco.

(a)  General rule.--Except as set forth in subsection (d), a

tax is imposed on smokeless tobacco sold or held for sale in

this Commonwealth by a smokeless tobacco distributor or

wholesaler to a retailer or consumer. The tax is imposed on the

smokeless tobacco wholesale price, regardless of the actual

price at which the smokeless tobacco is sold and regardless of

whether the smokeless tobacco is sold.

(b)  Purchase of stamp.--A smokeless tobacco distributor or

wholesaler that brings smokeless tobacco or causes smokeless

tobacco to be brought into this Commonwealth is liable for the

tax imposed by this section. The tax imposed is to be paid by

the purchase of stamps as provided in this act. The stamp shall

be affixed to or impressed upon each package of smokeless

tobacco.

(c)  Tax.--The tax imposed under this section shall be at the

rate of 59.2% of the wholesale price of the smokeless tobacco.

(d)  Applicability.--It shall be presumed that all smokeless

tobacco within this Commonwealth is subject to tax. The burden

of proof of exemption under this subsection is on the taxpayer

or remitter claiming exemption.

Section 4.  Effective date.

This act shall take effect in 60 days.