This bill proposes an increase in the tax on cigarettes in Iowa, amending Section 453A.6 of the Code 2026. The tax on all cigarettes used or disposed of in the state will rise from 6.8 cents to 14.3 cents per cigarette, resulting in an increase in the overall tax on a pack of cigarettes (20 cigarettes) from $1.36 to $2.86. Additionally, the tax on loose tobacco products dispensed from vending machines will increase from 3.06 cents to 6.43 cents per cigarette.

The bill includes specific legal language changes, such as the deletion of the previous tax rates and their replacement with the new rates. These adjustments aim to generate additional revenue from tobacco products, reflecting a significant increase in taxation on cigarettes and related products.

Statutes affected:
Introduced: 453A.6