The bill amends Section 44-20-12 of the General Laws in Chapter 44-20, which pertains to the taxation of cigarettes and other tobacco products. It establishes a tax of 225 mills for each cigarette sold or held for sale in the state, with the tax payment evidenced by stamps affixed by licensed distributors. Notably, the bill introduces a provision that reduces the tax by 75% for any product classified as a "modified risk tobacco product" by the Secretary of the United States Department of Health and Human Services, as defined under § 21 U.S.C. 387K. This classification includes tobacco products marketed to reduce the harm or risk of tobacco-related diseases.

The act is designed to incentivize the sale of modified risk tobacco products by significantly lowering the tax burden on these items. It aims to encourage consumers to choose products that may pose less risk compared to traditional tobacco products. The bill will take effect immediately upon passage.