An Update on 7 State Legislative Bills Impacting Tobacco Taxes

NATO | Tobacco Related State Legislative Update

The following update was provided by the National Association of Tobacco Outlets (NATO)

The following tobacco-related state legislative bills have been acted on by a state legislative committee or state legislature:

Alaska: Senate Bill 45, which as substituted, imposes a tax on electronic smoking products (including e-liquid) at the rate of 45 percent of the wholesale price, increases the legal age to purchase and possess tobacco and vapor products to 21 years of age, and prohibits the distribution of electronic smoking products that are not clearly recognizable as a tobacco product, moved out of the Senate Finance Committee with recommendations on April 12, 2022. The current version of the bill reduced the proposed tax rate from 75 percent of the wholesale price and also removed a provision banning flavored electronic smoking products.

Connecticut: Senate Bill 367, which prohibits the sale of flavored ENDS/vapor products; caps nicotine content at 35 mg/ml; requires dealers to maintain documentation of nicotine content and increases penalties for sales violations, is pending in the General Assembly.

Delaware: Senate Bill 131, which reduces the tax rate on premium cigars from 30 percent to 15 percent of the wholesale price, was heard in the House Committee on Revenue and Finance and reported without recommendation on April 13, 2022.