Bill > HB215

This bill amends Delaware's laws regarding tobacco product taxation and licensing by updating definitions and increasing taxes and fees. It defines "marijuana," "nicotine pouch," and "premium cigar," with the latter having specific criteria related to its composition and manufacturing. The bill broadens the definition of "tobacco products" to include those derived from nicotine and explicitly excludes marijuana products and FDA-regulated drugs. Crucially, it significantly increases the excise tax on cigarettes from 105 mills to 180 mills per cigarette, raises the tax on other tobacco products from 30% to 40% of the wholesale price, and increases the tax on moist snuff and vapor products. A new tax of 30% of the wholesale price is also imposed on premium cigars. Additionally, the bill doubles the fees for wholesale and retail tobacco licenses, vending machine licenses, and affixing agent licenses, and doubles the fee for replacing lost or damaged licenses. These changes are set to take effect in stages, with tax rate adjustments beginning September 1, 2026, and license fee increases starting January 1, 2027.