HB 215

Section 1 of this Act changes the definition of “tobacco product” to include all products intended for consumption that contain, are made from, or derived from tobacco or nicotine. Nicotine pouches are specifically enumerated as a product included in this definition. Products or substances that contain marijuana are specifically excluded from the tobacco products definition, since those items will be subject to taxation under Chapter 13 of Title 4. Also excluded are products regulated as a drug or therapeutic device by the United States Food and Drug Administration under Chapter V of the Federal Food, Drug, and Cosmetic Act. Section 2 of the Act raises tobacco product tax rates as follows: (1) The tax on cigarettes is raised from $2.10 per 20 pack of cigarettes to $3.60 per 20 pack of cigarettes; (2) Tax on vapor products raised from 5 cents to 25 cents; (3) Tax on moist snuff raised from 92 cents per ounce to $1.23 per ounce and the tax rate for all other tobacco products is raised from 30% of the wholesale price to 45% of the wholesale price. Sections 3 and 4 raise the fee for licenses under this chapter. The increased tax rates take effect on September 1, 2025. A floor tax, due by December 31, 2025 is due on products that are stocked but not yet sold as of the effective date, in an amount equal to the difference between tax already paid at the old rate and the new rate of tax. The increased license fees take effect on January 1, 2026.