Bill > HB290

This bill increases taxes on cigarettes and electronic cigarettes and establishes a committee to study tobacco and nicotine product taxation. Specifically, the cigarette tax will rise from $1.78 to $2.78 per 20-cigarette package, with proportional increases for packages of different sizes. For electronic cigarettes, the bill changes the tax structure from a per-milliliter rate to a percentage of wholesale price: closed cartridge systems will now be taxed at 65% of wholesale price (removing the previous $0.30 per milliliter rate), and open system electronic cigarettes will increase from 8% to 65% of wholesale price. The bill also creates a legislative study committee composed of three House representatives and one Senator, who will examine tobacco and nicotine product taxes. The committee must report its findings and recommendations to various state officials by November 1, 2025. The tax increases will take effect on July 1, 2025, while the rest of the bill becomes effective immediately upon passage. The fiscal note suggests these changes could generate indeterminable increases in revenue for the General Fund and Education Trust Fund, with potential additional revenue from the expanded electronic cigarette tax.

Budget and Finance

https://gc.nh.gov/bill_status/legacy/bs2016/bill_status.aspx?lsr=0642&sy=2025&sortoption=&txtsessionyear=2025&txtbillnumber=HB290