Senate raises nicotine taxes, expands levy to newer products

The Senate adopted a sixth substitute to House Bill 337, updating nicotine-product taxation to reflect changing nicotine-product markets and to discourage youth use.

Senator Stevenson, the sponsor, described a package that increases the per-cigarette tax to 11¢ (roughly $2.20 per pack), changes the tax basis for e-cigarettes and vapes to a percentage of manufacturer sales (raising the current rate), and sets a per-can (pouch) tax for many alternative nicotine pouch products (with additional per-pouch increments for larger cans). He told colleagues the revenue from the changes would flow into the general fund.

Several senators supported the measure as a public-health step. Senator Brammer said the bill addresses companies that “peddle in addiction” and praised the approach as a way to reduce youth access and use. Senator Bass, citing family concerns, said higher price and access barriers can deter early initiation.

Supporters argued the bill is calibrated to target emerging alternative products that have gained popularity among young users while exempting nicotine-cessation products. The Senate passed the sixth substitute under suspension of the rules; the clerk recorded the measure as passing and it will be returned to the House.