Section 44-20-13.2 - [Effective 1/1/2025] Tax imposed on other tobacco products, smokeless tobacco, cigars, pipe tobacco products and electronic nicotine-delivery products(a) A tax is imposed on all other tobacco products, smokeless tobacco, cigars, pipe tobacco products, and electronic nicotine-delivery system products sold, or held for sale in the state by any person, the payment of the tax to be accomplished according to a mechanism established by the administrator, division of taxation, department of revenue. The tax imposed by this section shall be as follows:(1) For all other tobacco products, smokeless tobacco, cigars, and pipe tobacco products, at the rate of eighty percent (80%) of the wholesale cost of other tobacco products, cigars, pipe tobacco products, and smokeless tobacco other than snuff.(2) Notwithstanding the eighty percent (80%) rate in subsection (a) above, in the case of cigars, the tax shall not exceed fifty cents ($.50) for each cigar.(3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the like rate on all fractional parts of an ounce thereof. Such tax shall be computed based on the net weight as listed by the manufacturer; provided, however, that any product listed by the manufacturer as having a net weight of less than 1.2 ounces shall be taxed as if the product has a net weight of 1.2 ounces.(4) Effective January 1, 2025: (i) For electronic nicotine-delivery system products that are prefilled, sealed by the manufacturer, and not refillable, at the rate of fifty cents per milliliter ($0.50/mL) of the e-liquid and/or e-liquid products contained therein; and(ii) For any other electronic nicotine-delivery system products, at the rate of ten percent (10%) of the wholesale cost of such products, whether or not sold at wholesale, and if not sold, then at the same rate upon the use by the wholesaler.(iii) Existing Inventory Floor Tax. For all electronic nicotine-delivery system products held by licensed electronic nicotine-delivery system products retailers as of January 1, 2025: Each person engaging in the business of selling electronic nicotine-delivery system products at retail in this state shall pay a tax measured by the volume of e-liquid and/or e-liquid products contained in electronic nicotine-delivery system products that are prefilled, sealed by the manufacturer, and not refillable and the wholesale cost of all other electronic nicotine-delivery system products held by the person in this state at 12:01 a.m. on January 1, 2025, and is computed for electronic nicotine-delivery system products that are prefilled, sealed by the manufacturer, and not refillable, at the rate of fifty cents per milliliter ($0.50/mL) of the e-liquid and/or e-liquid products contained therein and for any other electronic nicotine-delivery system products at the rate of ten percent (10%) of the wholesale cost of such products on January 1, 2025. Each person subject to the payment of the tax imposed by this section shall, on or before January 16, 2025, file a return, under oath or certified under the penalties of perjury, with the administrator on forms furnished by the administrator, showing the volume of e-liquid and/or e-liquid products contained in electronic nicotine-delivery system products which are prefilled, sealed by the manufacturer, and not refillable and the wholesale cost of all other electronic nicotine-delivery system products in that person's possession in this state at 12:01 a.m. on January 1, 2025, as described in this section, and the amount of tax due, and shall at the time of filing the return pay the tax to the administrator. Failure to obtain forms shall not be an excuse for the failure to make a return containing the information required by the administrator.(iv) For all electronic nicotine-delivery system products sold by licensed electronic nicotine-delivery system products distributors, manufacturers and/or importers in Rhode Island as of January 1, 2025: Any person engaging in the business of distributing at wholesale electronic nicotine-delivery system products in this state shall pay a tax measured by the volume of e-liquid and/or e-liquid products contained in electronic nicotine-delivery system products that are prefilled, sealed by the manufacturer, and not refillable computed at the rate of fifty cents per milliliter ($0.50/mL) of the e-liquid and/or e-liquid products contained therein and for all other electronic nicotine-delivery system products at the rate of ten percent (10%) of the wholesale cost of such products.(b)(1) Prior to January 1, 2025, any dealer having in the dealer's possession any other tobacco products with respect to the storage or use of which a tax is imposed by this section shall, within five (5) days after coming into possession of the other tobacco products in this state, file a return with the tax administrator in a form prescribed by the tax administrator. The return shall be accompanied by a payment of the amount of the tax shown on the form to be due. Records required under this section shall be preserved on the premises described in the relevant license in such a manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized personnel of the administrator.(2) Effective January 1, 2025, all other tobacco products, except for cigars, and electronic nicotine-delivery system products sold at wholesale in Rhode Island must be sold by a Rhode Island licensed distributor, manufacturer, or importer, and purchases of other tobacco products, except for cigars, and/or electronic nicotine-delivery system products, from an unlicensed distributor, manufacturer, or importer are prohibited. Any other tobacco products, except for cigars, and/or electronic nicotine-delivery system products purchased and/or obtained from an unlicensed person shall be subject to the terms of this chapter including, but not limited to, § 44-20-15 and shall be taxed pursuant to § 44-20-13.2.(3) Effective January 1, 2025, any dealer having in the dealer's possession any cigars with respect to the storage or use of which a tax is imposed by this section shall, within five (5) days after coming into possession of cigars in this state, file a return with the tax administrator in a form prescribed by the tax administrator. The return shall be accompanied by a payment of the amount of the tax shown on the form to be due. Records required under this section shall be preserved on the premises described in the relevant license in such a manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized personnel of the administrator.(c) The proceeds collected are paid into the general fund.R.I. Gen. Laws § 44-20-13.2
Amended by 2024 Pub. Laws, ch. 117,§ 6-16, eff. 1/1/2025.Amended by 2018 Pub. Laws, ch. 47, § 4-12, eff. 7/1/2018.Amended by 2017 Pub. Laws, ch. 302, § 8-15, eff. 7/1/2017.P.L. 1992, ch. 133, art. 102, §3; P.L. 1994 , ch. 70, art. 34, §1; P.L. 2001 , ch. 77, art. 7, §5; P.L. 2005 , ch. 117, art. 16, §6; P.L. 2006 , ch. 246, art. 30, §§15, 16; P.L. 2007 , ch. 340, § 1; P.L. 2008 , ch. 104, § 1; P.L. 2009 , ch. 5, art. 9, §8; P.L. 2012 , ch. 241, art. 21, § 6.This section is set out more than once due to postponed, multiple, or conflicting amendments.