The bill amends various sections of the Oklahoma Statutes related to cigarette excise taxes, specifically 68 O.S. 2021, Sections 301, 321, and 322. It modifies the definition of "cigarette" to include rolled tobacco intended to be heated or burned, while removing the previous reference to substitutes. Additionally, the bill introduces a partial tax exemption for cigarettes intended to be heated, applying a 50% exemption on the excise tax. The Oklahoma Tax Commission is tasked with creating distinct stamps for these products and ensuring they are available by the effective date of the act.

Furthermore, the bill clarifies existing exemptions from the stamp excise tax for sales to veterans' hospitals, the United States, and federally recognized Indian tribes that have entered into compacts with the state. It also updates references to ensure consistency within the law. The act is set to take effect on November 1, 2026.