This bill proposes an increase in the tobacco products tax rate and establishes a new fund dedicated to nicotine use prevention and control. A new "nicotine use prevention and control fund" is created, which will be administered by the Department of Health. The fund will receive 35% of the net receipts from the tobacco products tax and will be used to develop educational programs and materials aimed at preventing nicotine use among individuals aged five to twenty-five. The bill also includes provisions for the distribution of funds and outlines the process for disbursements.

In addition to the establishment of the new fund, the bill amends existing definitions within the Tobacco Products Tax Act. Key changes include a revised definition of "e-cigarette" to clarify its components and a new definition for "nicotine." The tax rate for tobacco products is set to increase to 40% of the wholesale price, with specific rates established for cigars and little cigars. The bill also removes certain exemptions and deductions related to the product value, replacing it with references to the wholesale price. The effective date for these changes is set for July 1, 2025.

Statutes affected:
introduced version: 7-1-6.11, 7-12-3, 7-12-7, 7-12A-2, 7-12A-3, 7-12A-4, 7-12A-5
CT substitute: 7-12A-2, 7-12A-3, 7-12A-4, 7-12A-5