SB 835

This bill prohibits a person from making remote retail sales of cigars or pipe

tobacco unless the person obtains a remote retail seller permit from the Department

of Revenue; uses an independent, third-party age verification service to determine

whether prospective buyers are 21 years of age; and satisfies certain other

requirements specified in the bill, including, in certain circumstances, collection of

the state sales and use tax. Under the bill, a “remote retail sale” of cigars or pipe

tobacco is a sale for which a consumer submits an order while not in the physical

presence of the seller or for which a consumer is not in the physical presence of the

seller when obtaining possession of the cigars or pipe tobacco. The bill also requires

a person to obtain a remote retail seller permit from DOR for each place of business

at which the person engages in the business of a remote retail seller. Remote retail

sellers must file a report and certain other forms specified in the bill with DOR each

month, and must pay to DOR the tobacco products tax incurred by the deadline for

filing those materials. The bill also specifies requirements regarding the calculation

of the tobacco products tax imposed on remote retail sales of cigars and pipe tobacco.

Under current law, a person who brings or causes to be brought into the state

tobacco products for the purpose of selling the tobacco products is a tobacco products

distributor and must obtain a permit from DOR to engage in that business. Current

law requires distributors to file monthly returns with DOR, and must pay to DOR

the tobacco products tax incurred by the deadline for filing those returns.