Newly Introduced State and Federal Tobacco-Related Legislation

Newly Introduced State and Federal Tobacco-Related Legislation

Tobacco-related bills introduced in states since May 15, 2015:

Kansas:  The May 20, 2015 version of House Bill 2109 includes sections that increases the tax on cigarettes by $.50 per pack and also increases the tax on tobacco products an additional 5%. House Bill 2109 received a “do pass as substituted recommendation” from the Senate Assessment and Taxation Committee on May 20th.  The previous versions of HB2109 did not include any sections relating to cigarettes and tobacco products.

Massachusetts:  House Bill 3466 prohibits the sale of electronic cigarettes to persons under 18 years of age.  House Bill 3469 requires a manufacturer of e-cigarettes to file a report with the Department of Health identifying the concentration of any toxins in the vapor produced by an e-cigarette when used as intended by the manufacturer.  House Bill 3503 repeals the sales tax on tobacco products.

New Jersey:  Senate Bill 2877 prohibits the sale of liquid nicotine except in child-resistant containers.

Pennsylvania:  House Bill 1213 increases the cigarette tax by $1.00 per pack, reduces the tax on little cigars to $1.00 per pack of 20, adds a new OTP tax of 40% of the purchase price and imposes a floor tax.  Senate Bill 117 contains the same tax increases as House Bill 1213.

Newly Introduced State and Federal Tobacco-Related Legislation

Newly Introduced State and Federal Tobacco-Related Legislation

Summary of tobacco-related bills introduced in states and Congress since May 8, 2015:

Louisiana:  House Bill 407 increases the tax on smoking tobacco from 33% of the invoice price to 34% of the invoice price.  House Bill 477 provides for the minimum pricing of cigarettes. 

Nebraska: Legislative Resolution 316 allows for an interim study to examine Nebraska withdrawing from the Master Settlement Agreement and increasing its tobacco excise tax to approximate the Master Settlement Agreement Payment. 

Federal: Senate Bill 1129 creates the “Tobacco Tax and Enforcement Reform Act and increases the federal tax on cigarettes and small cigars to $1.95 per pack.  SB1129 also modifies the excise tax on large cigars (currently those weighing more than three pounds per thousand) from 52.75% of the price sold by the manufacturer, but not more than 40.26 cents per piece, to $24.78 per pound (and a proportionate tax at the like rate on all fractional parts of a pound), but not less than 5.033 cents per cigar.  SB1129 provides “tax parity” for pipe tobacco and roll-your-own tobacco by taxing each product at the rate of $48.08 per pound. 

Newly Introduced State and Federal Tobacco-Related Legislation

Newly Introduced State and Federal Tobacco-Related Legislation

Below is a summary of tobacco-related bills introduced in state legislatures and governor budget proposals since May 4, 2015:

Alabama:  House Bill 572 increases the tax on cigarettes from 42.5 cents per pack to 67.5 cents per pack.

Illinois:  House Bill 4212 bans the sale of single or loose cigarettes to persons who are 18 or under and declares such transactions as a petty offense.

Wisconsin:  Assembly Bill 170, bans the use of vapor products in child care centers, schools and hospitals.

Kansas: House Bill 2429 increases the sales and use tax rate from 6.15% to 6.5%. House Bill 2429 would go into effect July 1, 2015.

United States:  House Bill 2058 amends the Federal Food, Drug, and Cosmetic Act to provide for a new grandfather date for deemed tobacco products to be the date that the FDA’s deeming regulations on cigars, pipe tobacco, e-cigarettes, hookah tobacco, nicotine gels, and dissolvables take effect.