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Tax rate parity for all tobacco and nicotine products

This Act amends the Internal Revenue Code of 1986 to increase federal excise taxes on tobacco products, including cigarettes, roll-your-own tobacco, cigars, and smokeless tobacco. A key change is the imposition of tax on extracted, concentrated, or synthesized nicotine (taxable nicotine) and discrete single-use units, aiming to equalize tax rates. The Act also establishes Floor Stocks Taxes and an annual inflation adjustment mechanism for tax rates.
Key points
Increases excise tax rates on cigarettes (small and large) and roll-your-own tobacco.
Establishes a new tax on 'taxable nicotine' (extracted, concentrated, or synthesized), excluding FDA-approved drug products.
Adjusts tax rates for pipe tobacco, smokeless tobacco, and cigars to achieve tax parity.
Imposes Floor Stocks Taxes on products held on the tax increase date, with a $500 credit allowed.
Implements an annual inflation adjustment for tax rates for calendar years beginning after 2023.
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Additional Information
Print number: 118_S_2929
Sponsor: Sen. Durbin, Richard J. [D-IL]
Process start date: 2023-09-26
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Tobacco Tax Equity Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_2929.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-09-26.

What are the main provisions?

Key points include:

  • Increases excise tax rates on cigarettes (small and large) and roll-your-own tobacco.
  • Establishes a new tax on 'taxable nicotine' (extracted, concentrated, or synthesized), excluding FDA-approved drug products.
  • Adjusts tax rates for pipe tobacco, smokeless tobacco, and cigars to achieve tax parity.
  • Imposes Floor Stocks Taxes on products held on the tax increase date, with a $500 credit allowed.
  • Implements an annual inflation adjustment for tax rates for calendar years beginning after 2023.
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 2025-12-30.

CATEGORIES

Taxes Health