“A bill 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 tobacco products to establish rate parity across categories and imposes a new tax on taxable nicotine (i.e., extracted, concentrated, or synthesized nicotine excluding that used in FDA-approved drugs or devices) equal to the small cigarette tax rate per 1,810 milligrams (with regulations to prevent double taxation). Specifically, the section increases rates as follows: (1) roll-your-own tobacco to $49.56 (from $24.78); (2) pipe tobacco to $49.56 (from $2.8311 cents); (3) smokeless tobacco to $26.84 per pound for snuff (from $1.51), $10.74 per pound for chewing tobacco (from 50.33 cents), and $100.66 per thousand for discrete single-use units (new, e.g., pouches or strips); (4) small cigars to $100.66 per thousand (from $50.33); (5) large cigars to $49.56 per pound with a minimum of 10.066 cents per cigar (from 52.75% of manufacturer price); and (6) small cigarettes by striking "$50.33" (new rate not specified). The section also authorizes Treasury guidance on large cigar weights, expands definitions of processed tobacco and smokeless tobacco, defines taxable nicotine and its manufacturers (treated as tobacco products), and makes conforming amendments.