Equalizing Excise Taxes on All Tobacco and Nicotine Products
This Act significantly increases and standardizes excise tax rates across nearly all tobacco products, including cigarettes, roll-your-own tobacco, cigars, pipe tobacco, and smokeless tobacco. Crucially, it introduces a new excise tax on nicotine used in vaping products (e-cigarettes) for the first time, aiming to achieve tax parity across different forms of tobacco and nicotine products.
Key points
Taxes on cigarettes and roll-your-own tobacco are doubled (e.g., small cigarettes increase from $50.33 to $100.66 per thousand).
A new excise tax is imposed on taxable nicotine used in vaping and e-cigarette products, bringing them under the tobacco tax structure.
Tax rates are equalized for pipe tobacco, smokeless tobacco (including discrete single-use units), and cigars to close existing tax loopholes.
A floor stocks tax is introduced for retailers and distributors on products held for sale when the tax increase takes effect.
All new tax rates will be automatically adjusted for inflation starting in the calendar year after 2026 (2027).
Introduced
Citizen Poll