Senate approves nicotine tax changes, expanding levies on alternative nicotine products

The Utah Senate passed a substituted version of House Bill 337 to modify nicotine product taxes, increasing the cigarette tax and creating new levies on alternative nicotine products and certain e‑liquids while exempting nicotine‑cessation products.

Senator Stevenson, the sponsor, outlined the rationale: rising use of alternative nicotine pouches among youth and the need to adjust tax policy. "Cigarettes will go to 11¢ per cigarette, $2.20 a pack," the sponsor said while describing tiered taxation on pouches and higher percentage taxes on many vaping products. The floor accepted multiple substitutes, including a sixth substitute that removed moist snuff from the tax changes after stakeholder questions.

Floor supporters framed the changes as a public‑health measure to reduce youth uptake and addiction, while sponsors said revenue from the change goes to the general fund. Senator Brammer and others said the bill helps curb addictive products targeted at young people and supported increased levies.

The substituted measure passed on a recorded vote and will be returned to the House. Sponsors emphasized the policy is aimed at reducing youth access and raising the price to discourage use; the floor record shows stakeholder engagement during drafting and multiple technical adjustments during substitution.