Bill > HF1035

Introduced Session

This bill relates to the regulation and taxation of tobacco products and heated tobacco products. The bill amends Code section 421B.2 by including heated tobacco products in the definition of cigarette for the purpose of cigarette sales including the determining of the basic cost of cigarettes and the selling of cigarettes at less than cost under Code chapter 421B. The bill amends Code section 453A.1(4) to provide that the definition of “cigarette” includes heated tobacco products for purposes of Code chapter 453A (cigarette and tobacco taxes and regulation of alternative nicotine products and vapor products). The bill defines “heated tobacco products” for purposes of Code chapter 453A, subchapter I (cigarettes and alternative nicotine products and vapor products), to mean a product containing tobacco that produces an inhalable aerosol by heating the tobacco by means of a device without combustion of the tobacco or by heat generated from a combustion source that only or primarily heats rather than burns the tobacco. The bill defines “heated tobacco products” the same for the purposes of Code chapter 453, subchapter II (cigars, other tobacco products, and alternative nicotine and vapor products), except the definition specifically excludes “vapor products” defined in Code section 453A.1(29). The bill amends Code section 453A.1(29) to provide that the definition of “vapor product” include liquid nicotine rather than just nicotine, and replaces the use of the term “other substance” in the definition with the term “liquid”. Under current law in Code chapter 453A, subchapter I, a tax is imposed under Code section 453A.6 on all cigarettes equal to 6.80 cents on each cigarette. However, the bill imposes a tax on each cigarette that is a unit containing a heated tobacco product under Code chapter 453A, subchapter I, that is equal to 3.40 cents. Under current law in Code chapter 453A, subchapter II, a tax is imposed under Code section 453A.43 on all tobacco products in this state at a rate of 22 percent of the wholesale price of the tobacco products, except little cigars and snuff. Currently, cigarettes are also excluded from the 22 percent tax on the wholesale price. By amending the definition of “tobacco products” in Code chapter 453A, subchapter II, to exclude heated tobacco products, the bill excludes heated tobacco products including vapor products from the 22 percent tax on the wholesale price of tobacco products. The bill defines “cigarette” to include heated tobacco products for purposes of regulating cigarettes under Code chapter 453C (tobacco product manufacturers —— financial obligations).

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Rereferred to Ways and Means. H.J. 05/15. (on 05/15/2025)

Official Document