Bill > H5770

This bill proposes to reduce the cigarette tax by 75% for modified risk tobacco products (MRTPs) as defined by federal law. Specifically, the bill amends an existing tax statute to create a new subsection that provides a significant tax reduction for tobacco products that the Secretary of Health and Human Services has determined can potentially reduce harm or risk associated with traditional tobacco products. Under this legislation, any tobacco product officially classified as an MRTP under 21 U.S.C. 387K would be subject to only 25% of the standard cigarette tax rate, which is currently 225 mills per cigarette. The bill aims to financially incentivize the development and distribution of tobacco products that are potentially less harmful than conventional cigarettes, and it would take effect immediately upon passage. The term "modified risk tobacco product" in this context refers to tobacco products that have been scientifically evaluated and officially recognized as potentially presenting a lower health risk compared to traditional tobacco products.

Budget and Finance

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