House Bill No. 2742 amends existing Oklahoma law regarding the taxation and definition of cigarettes. The bill redefines "cigarette" to include rolled tobacco intended to be heated or burned, and it removes the previous language that included substitutes. Additionally, it introduces a new tax exemption for cigarettes intended to be heated rather than burned, allowing for a 50% reduction in the tax levied under the relevant sections of the law. The bill also clarifies the definitions of various terms related to the sale and distribution of cigarettes, including "wholesaler," "retailer," and "delivery sale."

Furthermore, the bill mandates that the Oklahoma Tax Commission create distinct stamps for cigarettes intended to be heated, ensuring compliance with the new regulations. The effective date for these changes is set for November 1, 2025. Overall, the bill aims to modernize the legal framework surrounding cigarette taxation and sales in Oklahoma, particularly in response to evolving consumer preferences.