Bill > H4303

This bill amends South Carolina's tax code by modifying the tax rate on cigarettes for heating from fourteen and one-quarter mills to one and one-quarter mills per cigarette. Currently, cigarettes for smoking are taxed at three and one-half mills per cigarette, while cigarettes for heating were previously taxed at a higher rate of fourteen and one-quarter mills. The bill defines a "cigarette" broadly to include any roll containing tobacco or a tobacco substitute that is used for smoking or heating, wrapped in paper or another substance, and weighing three pounds per thousand or less. The definition is designed to capture various tobacco products that might be marketed or presented as cigarettes. The tax change will take effect on October 1, 2025, which gives manufacturers, retailers, and consumers time to adjust to the new tax rate. The bill also maintains the existing five percent tax on tobacco products based on the manufacturer's price, which is defined as the price at which a manufacturer sells to a wholesaler.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=4303&session=126&summary=B