Bill > HB215

This bill updates Delaware's tobacco product taxation and licensing laws by expanding the definition of tobacco products, increasing tax rates, and adjusting licensing fees. Specifically, the bill broadens the definition of "tobacco products" to include all products containing, made of, or derived from tobacco or nicotine, explicitly adding nicotine pouches to the list and clarifying that marijuana-based products and FDA-regulated drugs are excluded. The legislation increases the cigarette tax from 105 to 180 mills per cigarette, raises the tax on other tobacco products from 30% to 45% of wholesale price, and increases taxes on moist snuff and vapor products. Additionally, the bill doubles licensing fees across various categories: wholesale licenses will increase from $200 to $400, retail licenses from $50 to $100, vending machine licenses from $15 to $30, and affixing agent licenses from $200 to $400. The bill also increases the fee for replacing a lost or damaged license from $10 to $20. The new tax rates and definitions will take effect on September 1, 2025, with licensing changes implemented on January 1, 2026, and provisions for transitional taxation on existing tobacco product inventories.

Government Affairs

https://legis.delaware.gov/BillDetail?LegislationId=142462