Bill > S0519

This bill amends South Carolina's tax code to specifically address taxation of cigarettes for heating, which are tobacco products designed to be heated rather than traditionally smoked. The bill maintains the existing tax rate of three and one-half mills (0.0035 dollars) per cigarette for smoking, and establishes a new tax rate of one and one-quarter mills (0.00125 dollars) per cigarette for heating. The bill provides a detailed definition of what constitutes a "cigarette" for taxation purposes, including rolls containing tobacco or tobacco substitutes wrapped in paper or other substances, and covers products that might be marketed or perceived as cigarettes based on appearance, size, packaging, or labeling. The definition ensures that various forms of tobacco products can be appropriately taxed, regardless of how they are marketed or consumed. The tax amendment will take effect on October 1, 2025, giving businesses and tax authorities time to prepare for the new tax rate on heated cigarettes.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=0519&session=126&summary=B