Beth Oliva presents tobacco excise tax reform bill to Nevada legislators
June 01, 2025 | 2025 Legislature NV, Nevada
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A recent meeting of the Nevada Senate Committee on Revenue and Economic Development highlighted a significant legislative effort aimed at modernizing the state's tobacco tax framework. The proposed bill, discussed on May 31, 2025, seeks to address challenges posed by online tobacco sales, ensuring that Nevada can effectively collect taxes from out-of-state retailers.
Beth Oliva, an attorney representing the Cigar Association of America, provided an overview of the bill, emphasizing the need for updated regulations that reflect the realities of e-commerce. The current tobacco excise tax laws, she noted, were designed for traditional brick-and-mortar transactions and do not adequately account for online sales, which have surged in recent years. This gap has made it difficult for the state to enforce tax collection on purchases made from retailers located in other states.
The proposed legislation aims to establish a standardized approach to tobacco taxation across the country, addressing four main issues: aligning with constitutional thresholds set by the 2018 Wayfair decision, ensuring a clear obligation for tax payment, granting authority to state departments for tax collection, and creating a licensing mechanism for remote sellers. Oliva highlighted that similar legislation has already been successfully implemented in several states, including Colorado and Virginia.
The committee members expressed interest in the potential revenue implications of the bill. Oliva projected that Nevada could see an increase in tax revenue, estimating around $750,000 based on previous market conditions, with expectations that this figure could rise as the market continues to grow.
As Nevada grapples with declining tobacco sales, the proposed bill represents a proactive step towards adapting to changing market dynamics and ensuring that the state can effectively manage its tax revenue from tobacco products. The committee's discussions reflect a broader commitment to modernizing tax policies to better serve the needs of the community and the state's economy.
Beth Oliva, an attorney representing the Cigar Association of America, provided an overview of the bill, emphasizing the need for updated regulations that reflect the realities of e-commerce. The current tobacco excise tax laws, she noted, were designed for traditional brick-and-mortar transactions and do not adequately account for online sales, which have surged in recent years. This gap has made it difficult for the state to enforce tax collection on purchases made from retailers located in other states.
The proposed legislation aims to establish a standardized approach to tobacco taxation across the country, addressing four main issues: aligning with constitutional thresholds set by the 2018 Wayfair decision, ensuring a clear obligation for tax payment, granting authority to state departments for tax collection, and creating a licensing mechanism for remote sellers. Oliva highlighted that similar legislation has already been successfully implemented in several states, including Colorado and Virginia.
The committee members expressed interest in the potential revenue implications of the bill. Oliva projected that Nevada could see an increase in tax revenue, estimating around $750,000 based on previous market conditions, with expectations that this figure could rise as the market continues to grow.
As Nevada grapples with declining tobacco sales, the proposed bill represents a proactive step towards adapting to changing market dynamics and ensuring that the state can effectively manage its tax revenue from tobacco products. The committee's discussions reflect a broader commitment to modernizing tax policies to better serve the needs of the community and the state's economy.
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