House Bill 167 (HB 167) increases the excise tax on cigarettes and tobacco products.
House Bill 167 (Hb 167) increases the excise on cigarettes and taxes tobacco products at an increased rate. Specifically, the bill:
• Cigarette Tax (CT), currently $0.10 would double to $0.20 per cigarette. Little cigars are taxed at a rate equal to CT.
• Tobacco products’ excise tax rate increase from 25% to 83% of the product value. Excluded in tobacco products are cigars, little cigars, e-liquid, and e-cigarettes.
• E-Liquids (used to produce vapors in e-cigarettes) excise tax rises from 12.5% of the product value to 83%.
• E-cigarettes increases from $0.50 to $3.32 per cartridge.
• Tax on cigars (25% of the product value up to $0.50 per unit) is unchanged.
HB 167 proportionately adjusts existing cigarette tax distributions and does not reduce nor expand distributions.
The effective date of bill is July 1, 2021.