The bill amends the definition of "tobacco product" in the Texas Tax Code to include a broader range of items that contain nicotine. Specifically, it adds provisions to include products that contain nicotine or synthetic nicotine intended for human consumption, regardless of their source. The new definition explicitly excludes cigarettes, e-cigarettes, and FDA-approved products for nicotine addiction treatment that are labeled with a drug facts panel. Additionally, it introduces a category for products without tobacco leaf that contain nicotine and are intended for oral consumption.

The bill also clarifies that the changes made do not affect tax liabilities that accrued before the effective date of the Act, which is set for September 1, 2025. This means that any tax obligations prior to this date will continue to be governed by the previous law, ensuring that enforcement of tax collection remains consistent until the new definitions take effect.

Statutes affected:
Introduced: Tax Code 155.001 (Tax Code 155)