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" will be created in the state treasury, consisting of various sources of revenue, including appropriations and donations. The fund will be administered by the Department of Health and will support programs aimed at educating individuals aged five to twenty-five about nicotine use prevention. Additionally, the bill mandates that thirty-five percent of the net receipts from the tobacco products tax be allocated to this new fund.

The bill also amends existing definitions within the Tobacco Products Tax Act, including a revised definition of "e-cigarette" and the introduction of new terms such as "nicotine" and "wholesale price." The excise tax on tobacco products will be increased to forty percent of the wholesale price, with specific rates set for cigars and little cigars. The bill outlines exemptions from the tax for certain sales, including those to federal entities and tribal governments, and establishes that the tax will be due by the twenty-fifth day of the month following the taxable event. The provisions of this act are set to take effect on 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