Tobacco Tax Equity Act: Doubling Cigarette Tax and Equalizing Rates for All Products.
This Act significantly increases and standardizes excise tax rates across almost all tobacco products, including roll-your-own tobacco, pipe tobacco, cigars, and smokeless tobacco. This means consumers will face higher prices for these products, directly impacting personal finances. Furthermore, the bill doubles the tax on traditional cigarettes and introduces an automatic annual inflation adjustment for all tax rates, ensuring continuous price increases in the future.
Key points
Doubling the excise tax on small and large cigarettes, leading to a substantial increase in their retail price.
Equalizing tax rates for roll-your-own tobacco, pipe tobacco, and most smokeless tobacco products to a level comparable to cigarettes, eliminating previous tax disparities.
Establishing a new, high tax rate for discrete single-use smokeless tobacco units (e.g., nicotine pouches).
Implementing an annual inflation adjustment for all tobacco excise tax rates starting after 2021, guaranteeing continuous price increases in subsequent years.
Imposing a Floor Stocks Tax on tobacco products already held in inventory by retailers and wholesalers on the effective date of the tax increase.
Expired
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