North Dakota Information
Tobacco Taxes
North Dakota's excise tax per pack of cigarettes: $0.440
North Dakota's excise tax collection for the
fiscal year ending June 2002: $19,118,000
Sales tax on tobacco products: 5.00%
Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000
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Who Profits from
Cigarette Sales? 
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Comparing Excise Taxes on Cigarettes, Beer and Wine
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Number of six-packs of beer that must be sold in North Dakota to produce the same state excise tax revenue generated by one carton of cigarettes: 48.9 |
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Number of bottles of wine that must be sold in North Dakota to produce the same state excise tax revenue generated by one carton of cigarettes: 44.4 |
North Dakota Smokers' Contributions
to the State Economy - 2002
North Dakota smokers comprise only 22.1%1 of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
Smokers Pay Excise Taxes2 |
$ |
19,117,534 |
Smokers Pay Sales Taxes2 |
$ |
8,689,789 |
Smokers Pay Tobacco Settlement Payments3 |
$ |
23,162,587 |
|
$ |
50,969,910 |
Smokers' Economic/Tax Profile
North Dakota smokers' median household income 2001 |
$ |
30,550 |
North Dakota nonsmokers' median household income 2001 |
$ |
38,199 |
- Working Families Pay More1
41.3% of ND smokers had household income LESS than $25,000
6.8% of ND smokers had household income EQUAL to or GREATER THAN $75,000
The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.
- Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability4
Total average paid per North Dakota smoker in excise and sales taxes |
$ |
261 |
Cost per North Dakota smoker for settlement payments to North Dakota |
$ |
246 |
Total annual payment to North Dakota per smoker |
$ |
507 |
Total annual payment to North Dakota per nonsmoker |
$ |
0 |
North Dakota Smoker Facts 5
- Total smokers' payments to North Dakota were:
- Eleven times as large as excise taxes on alcoholic beverages in FY2001 ($4.9 million).
- More than ten times as large as death and gift tax revenues ($5.1 million) in FY2001.
- Nearly as large (85%) as FY2001 corporate income taxes ($63.4 million).
- The total amount paid by smokers in North Dakota could cover the 2001-2003 biennium general fund appropriations for:
- Bismark State, AND Lake Region State AND Williston State Colleges AND the North Dakota State College of Science ($53.6 million) COMBINED
OR
- The University of North Dakota Medical Center ($30 million) AND the North Dakota Department of Health ($14.8 million) COMBINED
- In 1997, smokers provided 1,639 jobs that paid an additional $1.2 million to the state in personal and corporate income taxes.6
TOTAL SMOKER CIGARETTE PAYMENTS TO NORTH DAKOTA |
|
Per year: |
$ |
50,969,910 |
Per day: |
$ |
139,548 |
Per hour: |
$ |
5,815 |
Per minute: |
$ |
97 |
Per second: |
$ |
2 |
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CIGARETTES DON'T PAY TAXES -
NORTH DAKOTA SMOKERS DO!!
1 Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2001
2 Orzechowski & Walker, Arlington, Virginia; from state revenue department
3 PriceWaterhouseCooper
4 U.S. Census Bureau, 2000 state population and Centers for Disease Control's Behavioral Risk Surveillance System, 2001
5 Tax and Budget Comparisons are from the U.S. Census Bureau and the North Dakota Office of Management and Budget, Fiscal Management Division, 2001-2003 Approved State Budget. Online at http://www.state.nd.us/fiscal/docs/AppropBook01-03.pdf
6 American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States.
Master Settlement Agreement Payments To Date
$86,643,746 has been paid to North Dakota since the Master Settlement Agreement was signed on November 23, 1998.
North Dakota Tobacco Laws
A summary of North Dakota state law is provided below
(for specific questions regarding state law, contact your legal advisor.)
Minimum Age |
Customers must be 18 years or older to purchase tobacco products. |
Restricted Products |
Cigarettes, cigarette papers, cigars, snuff, or tobacco in any other form, including bidis (beedies). |
Fine/Penalty Schedule for Selling to Minors |
Violators will be charged with an infraction punishable by a fine of up to $500. The procuring of tobacco products for minors is prohibited. Violators will be charged with an infraction punishable by a fine of up to $500. |
Affirmative Defense |
None. |
Minor Possession |
It is a noncriminal offense for a minor to purchase, possess or use tobacco products, including cigarette rolling papers. Violators who are 14 years of age or older will be fined $25. A law enforcement officer who cites a minor for a violation shall mail a notice of the violation to the parent or legal guardian of the minor within ten days of the citation. |
Sign Requirement
 |
None. |
Compliance Checks |
As a condition of receiving federal substance abuse block grant funds, federal law requires the state of North Dakota to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. A state agency, city, county, board of health, tobacco retailer, or association of tobacco retailers may conduct compliance surveys, after coordination with the appropriate local law enforcement authority. |
DISCLAIMER: This information summary is provided as a service of the Coalition, but is not intended to provide legal advice or analysis. These summaries are not intended to be complete representations of state law, which may contain additional rules and restrictions relating to tobacco products not mentioned in this summary, as well as retailing prohibitions related to matters including, but not limited to, state required training, minimum pack size, the sale of loose cigarettes and other restrictions. Retailers should not rely on these summaries as complete or accurate descriptions of applicable federal, state or local law. Users with questions about the law should seek the advice of counsel. Each state law is unique and possibly represents multiple legislative or regulatory acts. Local laws may differ. Check with local authorities for variations from state law. These summaries are not intended to be complete representations of state law. |
The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.
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