Cigarette and Tobacco Products Tax History

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2019 Session

  • New legislation authorizes the governor, in consultation with the tax commissioner, to enter into an agreement with any, or all of, the five North Dakota Indian Tribes for administration of tribal wholesale taxes on cigarette, tobacco and alcoholic beverages and gross receipts tax on retail sales of alcoholic beverages.

2015 Session 

  • Provisions were added to define electronic smoking devices and alternative nicotine products, while prohibiting sales to minors and requiring child resistant packaging for liquid nicotine products.

2013 Session 

  • Provisions were added to define a cigarette-making machine and to establish conditions on its ownership, operation, and use.

2009 Session 

  • To legally sell cigarettes in North Dakota, a manufacturer must provide written certification to the State Fire Marshal that its cigarettes meet fire safe performance standards.

2005 Session 

  • New legislation requires vendors selling cigarettes over the Internet to register with the Tax Commissioner and provide sales and customer information. 
  • Internet vendors are also required to verify the age of cigarette customers.

2003 Session 

  • The sale of "beedie" cigarettes was banned. Beedies are a product containing tobacco wrapped in a temburni leaf. 
  • Legislation prohibiting any dealer or distributor from knowingly selling or distributing any product not in compliance with N.D.C.C. § 51-25-02 was enacted.

2001 Session 

  • The method of taxing snuff and chewing tobacco was changed from a percentage of the wholesale price to a weight based value. Snuff is taxed at 60 cents per ounce and chewing tobacco is taxed at 16 cents per ounce. 
  • A change in the definition of Other Tobacco Products removed cigarette papers from the tobacco products tax. 
  • Cigars and pipe tobacco remain taxable at 28% of the whole purchase price.

1999 Session 

  • The sale of gray market cigarettes was prohibited, taxation of roll-your-own tobacco was moved from Other Tobacco Products to taxation as a cigarette and a minimum package size was established at 20 cigarettes per package. 
  • N.D.C.C. § 51-25 was enacted and requires the Tax Commissioner to accumulate information on purchases of cigarettes from non-participating manufacturers in the cigarette Master Settlement Agreement.

1993 Session

  • The cigarette tax was increased from 14½ to 22 mills per cigarette, or from 29¢ to 44¢ per package of 20.
  • The tobacco products tax was increased from 22% to 28% of the wholesale purchase price.

1993 Agreement

  • The Tax Commissioner and the Standing Rock Sioux Tribe signed an agreement to allow the commissioner to act as an agent of the tribe for the collection of a tribal cigarette and tobacco tax.