Assembly Bill 511 proposes modifications to the existing cigarette excise tax laws in Wisconsin. The bill redefines what constitutes a cigarette, specifically distinguishing between traditional cigarettes, which are rolls of tobacco intended for smoking by burning, and a new category of cigarettes that involve heating tobacco without combustion. The bill introduces a separate excise tax structure for these heated tobacco products, with specific tax rates based on their weight and length. For instance, the tax on heated tobacco cigarettes weighing not more than 3 pounds per thousand is set at 63 mills, while those weighing more than that will incur a tax of 126 mills, along with additional rates based on length.

In addition to the new definitions and tax rates, the bill also includes provisions for an inventory tax that will be imposed on cigarettes held in inventory at the time of any increase in the tax rates. This inventory tax applies to cigarettes for which the tax has already been paid at the previous rate, as well as to unaffixed stamps in the possession of distributors. The bill outlines the responsibilities of individuals in possession of these products to report and pay the tax within a specified timeframe following any rate increase. Overall, Assembly Bill 511 aims to update the state's tax framework to account for emerging tobacco products and ensure compliance with new tax structures.

Statutes affected:
Bill Text: 139.31(1)(a), 139.31, 139.31(1)(b), 139.31(1)(c), 139.31(1)(d)