ND HB1375

Creates a tax stamping system requiring all cigarette packs sold in North Dakota to bear stamps evidencing payment of state tobacco tax, with stamps affixed to the bottom of individual packs in a manner that prevents removal without destruction.

Establishes that only licensed distributors may purchase tax stamps from the tax commissioner and apply them to cigarette packs; prohibits distributors from transferring stamps to other distributors or persons and requires stamps to have unique serial numbers visible at point of sale.

Restricts cigarette sales to transactions between licensed distributors and licensed dealers only, with dealers required to purchase cigarettes exclusively from licensed distributors.

Denies or revokes licenses for applicants with $500 or more in delinquent cigarette taxes, prior license revocations for stolen or contraband cigarettes, criminal convictions related to contraband cigarettes, or false statements in applications.

Creates a new offense for knowingly possessing or possessing for sale contraband cigarettes, defined as cigarettes lacking required tax stamps, bearing counterfeit stamps, or violating federal import or labeling requirements.

Effective for taxable events occurring after July 31, 2013.