The bill amends Section 44-20-1 of the General Laws to introduce a definition for "alternative nicotine product," which encompasses any noncombustible product containing nicotine from any source, excluding tobacco leaf, and intended for human consumption. It establishes a tax of two dollars ($2.00) per container for those holding up to twenty units, with a proportionate tax for larger containers. The bill also specifies that "alternative nicotine products" do not include cigarettes, electronic nicotine-delivery system products, snuff, or any product regulated as a drug or device by the United States Food and Drug Administration.

Additionally, the bill modifies the tax structure for other tobacco products by removing references to smokeless tobacco, cigars, and pipe tobacco, while maintaining an eighty percent (80%) tax rate on other tobacco products. The tax imposed on alternative nicotine products is set at the rate of two dollars ($2.00) per container containing up to twenty (20) units, with a proportionate tax for containers exceeding that amount.

The overall changes are set to take effect on July 1, 2026.

Statutes affected:
8188: 44-20-1, 44-20-13.2