The bill amends the General Laws in Chapter 44-20 by introducing a new section, 44-20-12, which imposes a tax on all cigarettes sold or held for sale in the state. The tax is set at two hundred twenty-five (225) mills for each cigarette. The payment of this tax must be evidenced by stamps affixed by licensed distributors, and any cigarettes with the proper tax paid are not subject to further taxation under this chapter.

Additionally, the bill specifies that the tax imposed will be reduced by seventy-five percent (75%) for any product that the Secretary of the United States Department of Health and Human Services determines to be a modified risk tobacco product, as defined in 21 U.S.C. 387K. A modified risk tobacco product is any tobacco product sold or distributed for use to reduce the harm or risk of tobacco-related disease associated with commercially marketed tobacco products. The act is set to take effect upon passage.

Statutes affected:
5770: 44-20-5