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Higher Tobacco Taxes: Rate Equalization and New Fees.

This act significantly increases excise taxes on most tobacco products, including cigarettes, roll-your-own tobacco, pipe tobacco, smokeless tobacco, and cigars. The goal is to equalize tax rates across various tobacco products, which may affect their prices and availability for consumers. Additionally, the act introduces new taxation for discrete single-use tobacco units and an inflation adjustment mechanism for tax rates.
Key points
Prices of cigarettes, roll-your-own tobacco, pipe tobacco, and cigars are likely to increase due to higher taxes.
New taxes will be introduced for discrete single-use tobacco products, such as pouches or lozenges, potentially increasing their cost.
Tax rates will be automatically adjusted for inflation starting in 2021, meaning tobacco taxes may increase regularly.
Businesses holding tobacco product inventory before the changes take effect will be subject to an additional floor stocks tax on those inventories.
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Expired
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Additional Information
Print number: 117_S_1314
Sponsor: Sen. Durbin, Richard J. [D-IL]
Process start date: 2021-04-22
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Tobacco Tax Equity Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_1314.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-04-22.

What are the main provisions?

Key points include:

  • Prices of cigarettes, roll-your-own tobacco, pipe tobacco, and cigars are likely to increase due to higher taxes.
  • New taxes will be introduced for discrete single-use tobacco products, such as pouches or lozenges, potentially increasing their cost.
  • Tax rates will be automatically adjusted for inflation starting in 2021, meaning tobacco taxes may increase regularly.
  • Businesses holding tobacco product inventory before the changes take effect will be subject to an additional floor stocks tax on those inventories.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Durbin, Richard J. [D-IL].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

CATEGORIES

Taxes Health Economy