HB 1386 Summary

• Adds "electronic smoking devices" to North Dakota's tobacco tax and licensing regime, subjecting them to the same regulatory requirements as cigarettes, cigars, and pipe tobacco.

• Establishes a 28 percent excise tax on electronic smoking devices based on the wholesale purchase price, matching the rate applied to cigars and pipe tobacco.

• Requires distributors and dealers selling electronic smoking devices to obtain licenses from the attorney general and maintain records of sales for state tax commissioner inspection.

• Applies consumer use tax on electronic smoking devices purchased out-of-state and brought into North Dakota for resale, with tax credits for any tax already paid to other states.

• Classifies violations of the electronic smoking device tax requirements as Class A misdemeanors, with authority to confiscate products and equipment in violation of the chapter.