Bill > SB98

This bill revises the tax rate on a specific type of cigarette known as "heated but not burned" cigarettes, which are likely referring to electronic or heat-not-burn tobacco products. Currently, cigarettes intended to be burned are taxed at $1.70 per 20-cigarette package, and the bill introduces a new, lower tax rate of 85 cents for packages of 20 cigarettes that are intended to be heated but not burned. The bill maintains the existing tax calculation method for packages with different numbers of cigarettes, proportionally adjusting the tax based on the number of cigarettes. The tax rate change applies to cigarettes sold by wholesalers after June 30, 2025, and the bill becomes effective immediately upon passage and approval. This modification appears to create a distinct tax category for alternative tobacco products that use heating technology instead of combustion, potentially reflecting changing tobacco consumption technologies and providing a different tax treatment for these newer product types.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC0185