1Imposing a tax on smokeless tobacco; and providing for
2definitions.

3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:

5Section 1. Short title.

6This act shall be known and may be cited as the Smokeless
7Tobacco Tax Act.

8Section 2. Definitions.

9The following words and phrases when used in this act shall
10have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12"Smokeless tobacco." A product containing finely cut, 
13ground, powdered, blended or leaf tobacco made primarily for 
14individual consumption which is intended to be placed in the 
15oral or nasal cavity and not intended to be smoked. The term 
16includes chewing tobacco, dipping tobacco and snuff.

17"Smokeless tobacco distributor or wholesaler." A person 
18engaged in the business of selling smokeless tobacco that sells, 

1exchanges or distributes smokeless tobacco to retailers, 
2consumers or other wholesalers or distributors in this 
3Commonwealth. The term includes a smokeless tobacco manufacturer 
4that has within this Commonwealth any office, sales house or 
5other place of business.

6"Wholesale price." The price for which a smokeless tobacco 
7manufacturer sells smokeless tobacco to a smokeless tobacco 
8distributor or wholesaler, exclusive of any discount, rebate or 
9other reduction.

10Section 3. Imposition and rate of tax on smokeless tobacco.

11(a) General rule.--Except as set forth in subsection (d), a
12tax is imposed on smokeless tobacco sold or held for sale in
13this Commonwealth by a smokeless tobacco distributor or
14wholesaler to a retailer or consumer. The tax is imposed on the
15smokeless tobacco wholesale price, regardless of the actual
16price at which the smokeless tobacco is sold and regardless of
17whether the smokeless tobacco is sold.

18(b) Purchase of stamp.--A smokeless tobacco distributor or
19wholesaler that brings smokeless tobacco or causes smokeless
20tobacco to be brought into this Commonwealth is liable for the
21tax imposed by this section. The tax imposed is to be paid by
22the purchase of stamps as provided in this act. The stamp shall
23be affixed to or impressed upon each package of smokeless
24tobacco.

25(c) Tax.--The tax imposed under this section shall be at the
26rate of 59.2% of the wholesale price of the smokeless tobacco.

27(d) Applicability.--It shall be presumed that all smokeless
28tobacco within this Commonwealth is subject to tax. The burden
29of proof of exemption under this subsection is on the taxpayer
30or remitter claiming exemption.

1Section 4. Effective date.

2This act shall take effect in 60 days.