USA Statutes : nevada
Title : Title 32 - REVENUE AND TAXATION
Chapter : CHAPTER 370A - MANUFACTURERS OF TOBACCO PRODUCTS
As used in this chapter, the words and
terms defined in NRS 370A.020 to
370A.120 , inclusive, have the
meanings ascribed to them in those sections.
(Added to NRS by 1999, 1106 )
“Adjusted for
inflation” means increased in accordance with the formula for inflation
adjustment set forth in Exhibit C to the Master Settlement Agreement.
(Added to NRS by 1999, 1106 )
“Affiliate” means a person who
directly or indirectly owns or controls, is owned or controlled by, or is
under common ownership or control with, another person. Solely for the
purposes of this definition, the terms “owns,” “is owned” and “ownership”
mean ownership of an equity interest, or the equivalent thereof, of ten
percent or more, and the term “person” means an individual, partnership,
committee, association, corporation or any other organization or group of
persons.
(Added to NRS by 1999, 1106 )
“Allocable share” has the
meaning ascribed to it in section II(f) of the Master Settlement
Agreement.
(Added to NRS by 1999, 1106 )
“Cigarette” means any product
that contains nicotine, is intended to be burned or heated under ordinary
conditions of use, and consists of or contains:
1. Any roll of tobacco wrapped in paper or in any other substance
not containing tobacco;
2. Tobacco, in any form, that is functional in the product, which
because of its appearance, the type of tobacco used in the filler, or its
packaging and labeling, is likely to be offered to or purchased by
consumers as a cigarette; or
3. Any roll of tobacco wrapped in any substance containing tobacco
which, because of its appearance, the type of tobacco used in the filler,
or its packaging and labeling, is likely to be offered to or purchased by
consumers as a cigarette described in subsection 1.
Ê The term includes “roll-your-own” tobacco, that is, any tobacco which
because of its appearance, type, packaging or labeling is suitable for
use and likely to be offered to or purchased by consumers as tobacco for
making cigarettes. For the purposes of this section, 0.09 ounces of
“roll-your-own” tobacco constitutes one individual cigarette.
(Added to NRS by 1999, 1106 )
“Manufacturer of tobacco products” means an entity that, after May 24,
1999, directly, and not exclusively through an affiliate:
1. Manufactures cigarettes anywhere that such manufacturer intends
to be sold in the United States, including cigarettes intended to be sold
in the United States through an importer (except where such importer is
an original participating manufacturer, as that term is defined in the
Master Settlement Agreement, that will be responsible for the payments
under the Master Settlement Agreement with respect to such cigarettes as
a result of the provisions of subsection II(mm) of the Master Settlement
Agreement and that pays the taxes specified in subsection II(z) of the
Master Settlement Agreement, and provided that the manufacturer of such
cigarettes does not market or advertise such cigarettes in the United
States);
2. Is the first purchaser anywhere for resale in the United States
of cigarettes manufactured anywhere that the manufacturer does not intend
to be sold in the United States; or
3. Becomes a successor of an entity described in subsection 1 or 2.
Ê The term does not include an affiliate of a manufacturer of tobacco
products unless the affiliate itself is an entity described in subsection
1, 2 or 3.
(Added to NRS by 1999, 1107 )
“Master
Settlement Agreement” means the settlement agreement, and related
documents, entered into on November 23, 1998, by this state and leading
United States manufacturers of tobacco products.
(Added to NRS by 1999, 1107 )
“Participating
manufacturer” has the meaning ascribed to it in section II(jj) of the
Master Settlement Agreement.
(Added to NRS by 1999, 1107 )
“Qualified escrow
fund” means an escrow arrangement with a federally or state-chartered
financial institution, that has no affiliation with any manufacturer of
tobacco products and has assets of at least $1 billion where the
arrangement requires the financial institution to hold the principal of
the amount deposited in escrow for the benefit of releasing parties and
prohibits the manufacturer of tobacco products which deposits the money
from using, having access to or directing the use of the principal of the
amount deposited except as permitted under NRS 370A.150 .
(Added to NRS by 1999, 1107 )
“Released claims” has the
meaning ascribed to it in section II(nn) of the Master Settlement
Agreement.
(Added to NRS by 1999, 1107 )
“Releasing parties” has
the meaning ascribed to it in section II(pp) of the Master Settlement
Agreement.
(Added to NRS by 1999, 1107 )
“Units sold” means, with
respect to a particular manufacturer of tobacco products for a particular
year, the number of individual cigarettes sold in this state by the
manufacturer directly or through a distributor, retailer or similar
intermediary or intermediaries during that year, as measured by excise
taxes collected by the State on packs, or containers of “roll-your-own”
tobacco, bearing the excise stamp of this state.
(Added to NRS by 1999, 1107 )
The Department of Taxation shall
adopt such regulations as are necessary to ascertain the amount of excise
tax collected by the State on the cigarettes of each manufacturer of
tobacco products for each year.
(Added to NRS by 1999, 1107 )
A manufacturer of tobacco
products that sells cigarettes to consumers in this state, directly or
through a distributor, retailer or similar intermediary or
intermediaries, after May 24, 1999, shall do one of the following:
1. Become a participating manufacturer and generally perform its
financial obligations under the Master Settlement Agreement; or
2. Deposit into a qualified escrow fund, on or before April 15 of
the year following the year in question, the following amounts as such
amounts are adjusted for inflation:
(a) For the year 1999, $0.0094241 for each unit sold after May 24,
1999;
(b) For the year 2000, $0.0104712 for each unit sold;
(c) For each of the years 2001 and 2002, $0.0136125 for each unit
sold;
(d) For each of the years 2003 through 2006, $0.0167539 for each
unit sold; and
(e) For each of the year 2007 and each year thereafter, $0.0188482
for each unit sold.
(Added to NRS by 1999, 1108 )
[Effective until the date a court of competent
jurisdiction enters a judgment determining that subsection 2 of this
section is unconstitutional.] A manufacturer of tobacco products that
deposits money into escrow pursuant to subsection 2 of NRS 370A.140
shall receive the interest or other
appreciation on the deposit as earned. The principal of the deposit may
be released from escrow only under the following circumstances:
1. To pay a judgment or settlement on a released claim brought
against that manufacturer by this State or by a releasing party located
or residing in this State. Money may be released from escrow under this
subsection only in the order in which it was deposited into escrow and
only to the extent and at the time necessary to make payments required
under the judgment or settlement.
2. To the extent that the manufacturer establishes that the amount
it was required to deposit into escrow on account of units sold in the
State in a particular year was greater than the Master Settlement
Agreement payments, as determined pursuant to section IX(i) of that
Agreement including after final determination of all adjustments, that
such manufacturer would have been required to make on account of such
units sold if the manufacturer had been a participating manufacturer, the
excess must be released from escrow and revert to the manufacturer.
3. To the extent not released from escrow under subsection 1 or 2,
deposits must be released from escrow and revert to the manufacturer 25
years after the date on which they were deposited.
(Added to NRS by 1999, 1108 ; A 2005, 379 )
[Effective from the date a court of competent
jurisdiction enters a judgment determining that former subsection 2 of
this section is unconstitutional until the date such a court enters a
judgment determining that the repeal of former subsection 2 of this
section is unconstitutional.] A manufacturer of tobacco products that
deposits money into escrow pursuant to subsection 2 of NRS 370A.140
shall receive the interest or other
appreciation on the deposit as earned. The principal of the deposit may
be released from escrow only under the following circumstances:
1. To pay a judgment or settlement on a released claim brought
against that manufacturer by this State or by a releasing party located
or residing in this State. Money may be released from escrow under this
subsection only in the order in which it was deposited into escrow and
only to the extent and at the time necessary to make payments required
under the judgment or settlement.
2. To the extent not released from escrow under subsection 1,
deposits must be released from escrow and revert to the manufacturer 25
years after the date on which they were deposited.
(Added to NRS by 1999, 1108 ; A 2005, 379 , 380 , effective from the date a court of
competent jurisdiction enters a judgment determining that former
subsection 2 of this section is unconstitutional until the date such a
court enters a judgment determining that the repeal of former subsection
2 of this section is unconstitutional)
[Effective on the date a court of competent
jurisdiction enters a judgment determining that the repeal of former
subsection 2 of this section is unconstitutional.] A manufacturer of
tobacco products that deposits money into escrow pursuant to subsection 2
of NRS 370A.140 shall receive the
interest or other appreciation on the deposit as earned. The principal of
the deposit may be released from escrow only under the following
circumstances:
1. To pay a judgment or settlement on a released claim brought
against that manufacturer by this State or by a releasing party located
or residing in this State. Money may be released from escrow under this
subsection only in the order in which it was deposited into escrow and
only to the extent and at the time necessary to make payments required
under the judgment or settlement.
2. To the extent that the manufacturer establishes that the amount
it was required to deposit into escrow in a particular year was greater
than this State’s allocable share of the total payments that the
manufacturer would have been required to make in that year under the
Master Settlement Agreement if the manufacturer had been a participating
manufacturer, as such payments are determined pursuant to section
IX(i)(2) of that Agreement and before any of the adjustments or offsets
described in section IX(i)(3) of that Agreement other than the inflation
adjustment, the excess must be released from escrow and revert to the
manufacturer.
3. To the extent not released from escrow under subsection 1 or 2,
deposits must be released from escrow and revert to the manufacturer 25
years after the date on which they were deposited.
(Added to NRS by 1999, 1108 ; A 2005, 379 , 380 , effective on the date a court of
competent jurisdiction enters a judgment determining that the repeal of
former subsection 2 of this section is unconstitutional)
1. A manufacturer of tobacco products that elects to deposit money
into escrow pursuant to subsection 2 of NRS 370A.140 shall annually certify to the Attorney
General that it is in compliance with that subsection and with NRS
370A.150 . If the Attorney General
does not receive the annual certification, he shall mail a notice to the
manufacturer. The Attorney General may maintain a civil action on behalf
of this state against any manufacturer of tobacco products which fails to
deposit into escrow the amount required by NRS 370A.140 .
2. A manufacturer of tobacco products that fails in any year to
place into escrow the money required under NRS 370A.140 shall:
(a) Be required within 15 days to place such money into escrow as
shall bring it into compliance with NRS 370A.140 . The court, upon a finding of a violation of
subsection 2 of NRS 370A.140 or NRS
370A.150 , may impose a civil penalty
to be paid to the State General Fund in an amount not to exceed 5 percent
of the amount improperly withheld from escrow per day of the violation
and in a total amount not to exceed 100 percent of the original amount
improperly withheld from escrow.
(b) In the case of a knowing violation, be required within 15 days
to place such money into escrow as shall bring it into compliance with
this section. The court, upon a finding of a knowing violation of
subsection 2 of NRS 370A.140 or NRS
370A.150 , may impose a civil penalty
to be paid to the State General Fund in an amount not to exceed 15
percent of the amount improperly withheld from escrow per day of the
violation and in a total amount not to exceed 300 percent of the original
amount improperly withheld from escrow.
(c) In the case of a second knowing violation, shall be prohibited
from selling cigarettes to consumers in this state, directly or through a
distributor, retailer or similar intermediary, for a period to be fixed
by the court not to exceed 2 years.
3. Each failure to make an annual deposit required by NRS 370A.140
constitutes a separate violation.
(Added to NRS by 1999, 1108 )
