A BILL TO BE ENTITLED
AN ACT to allow certain wholesale dealers to request relief from payment of excise taxes on other tobacco products.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑113.4 reads as rewritten:
"§ 105‑113.4.  Definitions.
The following definitions apply in this Article:
(1)	Affiliated wholesale dealer. – A wholesale dealer who shares, directly or indirectly, common ownership with a manufacturer and to whom the manufacturer sells exclusively the manufacturer's tobacco products other than cigarettes for distribution to other wholesale dealers in this State.
(1a)	Cigar. – A roll of tobacco wrapped in a substance that contains tobacco, other than a cigarette.
(1b)	Cigarette. – Any of the following:
a.	A roll of tobacco wrapped in paper or in a substance that does not contain tobacco.
b.	A roll of tobacco wrapped in a substance that contains tobacco and that, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to or purchased by a consumer as a cigarette described in subpart a. of this subdivision.
…
(6)	Manufacturer. – A person who manufactures or produces tobacco products or imports tobacco products into the United States for resale.
…"
SECTION 2.  G.S. 105‑113.35 is amended by adding a new subsection to read:
"(c1)	Manufacturer's Relief. – A manufacturer who ships tobacco products other than cigarettes to an affiliated wholesale dealer licensed under this Part is relieved of paying the tax imposed by this section on the tobacco products. To be relieved of payment of the tax imposed by this section, a manufacturer must comply with the requirements set by the Secretary."
SECTION 3.  G.S. 105‑113.35(d) reads as rewritten:
"(d)	Manufacturer's Option. – A manufacturer or wholesale dealer who is not a retail dealer and who ships tobacco products other than cigarettes to either a wholesale dealer or retail dealer licensed under this Part may apply to the Secretary to be relieved of paying the tax imposed by this section on the tobacco products. Once granted permission, a manufacturer or wholesale dealer may choose not to pay the tax until otherwise notified by the Secretary. To be relieved of payment of the tax imposed by this section, a manufacturer or wholesale dealer must comply with the requirements set by the Secretary."
SECTION 4.  This act becomes effective July 1, 2007.