AN ACT to remove the licensing requirement for delivery sellers making delivery sales of non‑tax‑paid cigarettes, to remove the licensing requirement for delivery sellers or remote sellers making delivery sales or remote sales of non‑tax‑paid tobacco products, and to create a distinct license type for vapor products.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑113.12 reads as rewritten:

§ 105‑113.12.  License required.

(a)        A distributor must obtain a license for each of the locations listed in this subsection, as applicable, and must pay a tax of twenty‑five dollars ($25.00) for each license. A license is in effect until June 30 of the year following the second calendar year after the date of issuance or renewal. A license is renewable upon signed application with no renewal license tax, unless applied for after the June 30 expiration date. The locations are:

(1)        Each location where a distributor receives or stores non‑tax‑paid cigarettes in this State.

(2)        For a distributor that is a delivery seller, each location from which the distributor ships receives or stores non‑tax‑paid cigarettes for delivery sales of cigarettes if the location is a location other than the location described in subdivision (1) of this subsection.

(b)        Repealed by Session Laws 2021‑180, s. 42.9(d), effective July 1, 2022, and applicable to sales or purchases occurring on or after that date.

(c)        An out‑of‑state distributor that is not a delivery seller may obtain a distributor's license upon compliance with the provisions of G.S. 105‑113.4A and G.S. 105‑113.24 and payment of a tax of twenty‑five dollars ($25.00).

SECTION 2.  G.S. 105‑113.39A reads as rewritten:

§ 105‑113.39A.  License required.

(a)        Requirement. – A wholesale dealer or a retail dealer must obtain from the Secretary a license for each of the locations listed in this subsection, as applicable, in accordance with subsections (a1) and (a2) of this section, and must pay the required license tax for each license. A license is in effect until June 30 of the year following the second calendar year after the date of issuance or renewal, unless cancelled or revoked prior to expiration. A license is renewable upon signed application with no renewal license tax, unless applied for after the June 30 expiration date. The locations are:

(a1)      Other Tobacco Products License. – A wholesale dealer or a retail dealer must obtain an other tobacco products license for all of the following locations:

(1)        Each location where a wholesale dealer makes tobacco products.products other than vapor products.

(2)        Each location where a wholesale dealer or a retail dealer receives or stores non‑tax‑paid tobacco products.products other than vapor products.

(3)        Each location from where a retail dealer that is a delivery seller or remote seller ships receives or stores non‑tax‑paid tobacco products for delivery sales or remote sales of tobacco products other than vapor products if the location is a location other than the location described in subdivision (2) of this subsection.

(a2)      Vapor Products License. – A wholesale dealer or a retail dealer must obtain a vapor products license for all of the following locations:

(1)        Each location where a wholesale dealer makes vapor products.

(2)        Each location where a wholesale dealer or a retail dealer receives or stores non‑tax‑paid vapor products.

(3)        Each location from where a retail dealer that is a delivery seller or remote seller receives or stores non‑tax‑paid vapor products for delivery sales if the location is a location other than the location described in subdivision (2) of this subsection.

(b)        License Tax Amount. – The license tax amounts are as follows:

(1)        Wholesale dealer $25.00

(2)        Retail dealer $10.00

(c)        Out‑of‑State Wholesale Dealers. – An out‑of‑state wholesale dealer of tobacco products that is not a delivery seller or a remote seller may obtain a wholesale dealer's license upon compliance with the provisions of G.S. 105‑113.4A and payment of a tax of twenty‑five dollars ($25.00).

SECTION 3.  This act becomes effective October 1, 2023.