“To amend the Internal Revenue Code of 1986 to provide tax rate parity among all tobacco products, and for other purposes.”
No CRS summary available for this bill.
This section increases federal excise taxes on various tobacco products to establish tax rate parity and imposes a new excise tax on taxable nicotine (i.e., extracted, concentrated, or synthesized nicotine, excluding that used in FDA-approved drugs or certain combination products). Specifically, it (1) increases the tax on roll-your-own tobacco to $49.56 per thousand (from $24.78); (2) increases the tax on pipe tobacco to $49.56 per pound (from $2.8311 cents); (3) increases the tax on smokeless tobacco to $26.84 per pound (from $1.51) on products other than snuff, to $10.74 per ounce (from 50.33 cents) on snuff, and establishes a new rate of $100.66 per thousand on discrete single-use units (i.e., lozenges, tablets, pills, pouches, dissolvable strips, or similar nonsmoked products), with conforming definitions; (4) increases the tax on small cigars to $100.66 per thousand (from $50.33); (5) replaces the large cigar tax of 52.75% ad valorem (with a 5.015-cent-per-cigar floor) with a specific rate of $49.56 per pound (not less than 10.066 cents per cigar) and authorizes Treasury guidance on cigar weight; and (6) increases the tax on small cigarettes by striking "$50.33" in section 5701(b)(1). (Thus, the nicotine tax equals the small cigarette rate per 1,810 milligrams, with coordination rules to avoid double taxation on traditional tobacco products.)