This bill amends various sections of the Oklahoma Statutes regarding the administration of cigarette excise taxes. It modifies the definition of "cigarette" to include only rolled tobacco intended to be heated or burned, removing the previous allowance for substitutes. Additionally, the bill introduces a partial tax exemption of 50% for cigarettes intended to be heated rather than burned. It also mandates that the Oklahoma Tax Commission create distinct stamps for these products and ensure their availability by the effective date of the act.

Furthermore, the bill clarifies the exemptions from the stamp excise tax, which include sales to veterans hospitals, the United States, and federally recognized Indian tribes that have entered into compacts with the state. The effective date for the implementation of these changes is set for November 1, 2025. Overall, the bill aims to update the regulatory framework surrounding cigarette taxation and sales in Oklahoma.