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MI SB0582

MI SB0582
Taxation: tobacco; tax on certain nicotine and vapor products; establish, and provide for various amendments. Amends title & secs. 2, 3, 6, 6a, 6c, 6d, 7, 8, 9, 11, 12 & 14 of 1993 PA 327 (MCL 205.422 et seq.).


summary

Introduced
09/24/2025
In Committee
09/24/2025
Crossed Over
Passed
Dead

Introduced Session

103rd Legislature

Bill Summary

A bill to amend 1993 PA 327, entitled"Tobacco products tax act,"by amending the title and sections 2, 3, 6, 6a, 6c, 6d, 7, 8, 9, 11, 12, and 14 (MCL 205.422, 205.423, 205.426, 205.426a, 205.426c, 205.426d, 205.427, 205.428, 205.429, 205.431, 205.432, and 205.434), the title as amended by 2012 PA 188 and sections 2, 3, 6, 6a, 6c, 6d, 7, 8, 9, 11, and 12 as amended by 2022 PA 171.

AI Summary

This bill amends the Michigan Tobacco Products Tax Act to expand the definition of tobacco products and introduce new regulations for nicotine and vapor products. The bill will take effect on January 1, 2026, and introduces several key provisions: it defines new categories of products such as "alternative nicotine products" and "authorized consumable material," establishes licensing requirements for manufacturers and sellers of these products, and imposes a 32% tax on their wholesale price. The bill also creates new reporting requirements for businesses, with penalties for non-compliance, and requires that tax revenues from these new product categories be split evenly between the Healthy Michigan Fund and the Michigan Medicaid Benefits Trust Fund. Additionally, the legislation prohibits local governments from imposing new taxes or regulations on tobacco and related products beyond what exists at the time of the bill's enactment. The bill aims to bring emerging nicotine delivery products under the same regulatory framework as traditional tobacco products, ensuring proper taxation, licensing, and consumer protections.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Referred To Committee On Appropriations (on 09/24/2025)

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