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 in the state treasury, which will be administered by the Department of Health. The fund will receive thirty-five percent 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 outlines the process for disbursements from the fund and stipulates that any unspent balance at the end of the fiscal year will revert to the general fund.

In addition to the establishment of the new fund, the bill amends 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 also clarifies exemptions from the tobacco products tax and allows for deductions for interstate sales. The provisions of this act are set to take effect on July 1, 2026.

Statutes affected:
introduced version: 7-12A-2, 7-12A-3, 7-12A-4, 7-12A-5