Bill > S819

This bill, called the "End Tobacco Loopholes Act," aims to standardize and increase excise taxes across various tobacco and nicotine products to create tax rate parity. The legislation proposes significant tax increases on multiple tobacco and nicotine product categories, including roll-your-own tobacco, pipe tobacco, smokeless tobacco, small and large cigars, and introduces a new tax on extracted or synthesized nicotine. Specific tax rate changes include raising taxes on roll-your-own tobacco from $24.78 to $49.56, increasing smokeless tobacco taxes to $26.84, and doubling cigarette taxes from $50.33 to $100.66. The bill also defines and taxes "discrete single-use units" like nicotine lozenges and dissolvable strips, and introduces a tax on taxable nicotine at $49.56 per 1,810 milligrams. Additionally, the legislation includes provisions for annual inflation adjustments to these tax rates starting in 2026 and implements floor stock taxes on existing tobacco product inventories to ensure compliance with the new tax rates. The bill aims to close taxation loopholes, generate additional revenue, and potentially discourage tobacco and nicotine product consumption by significantly increasing their cost.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/819/all-info