House Bill 23-1015: Taxation of Tobacco Products

• Establishes new definitions and tax requirements for "remote retail sellers" and "remote retail sales" of cigars and pipe tobacco sold through non-over-the-counter means (phone, mail, internet) to consumers outside physical presence of seller.

• Excludes cigars and pipe tobacco from the definition of "delivery sales," creating a separate tax category for remote retail sales of these products with their own manufacturer's list price calculation methods.

• Imposes tobacco excise taxes on remote retail sellers at same rates as traditional distributors, including the base tax and 20% constitutional tax on manufacturer's list price, collected by department of revenue.

• Requires remote retail sellers to obtain licenses from the department of revenue, file quarterly tax returns, maintain itemized invoices documenting actual costs paid for cigars and pipe tobacco, and comply with all licensing and reporting requirements applicable to distributors.

• Effective January 1, 2024, subject to referendum petition process; if petitioned, measure requires voter approval at November 2024 general election to take effect.