Assembly Bill 511 proposes modifications to the existing cigarette excise tax laws in Wisconsin. The bill redefines what constitutes a cigarette by 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 latter category is defined as rolls of tobacco wrapped in substances other than tobacco that do not include vapor products. The bill establishes separate tax rates for these two categories, with the tax on traditional cigarettes remaining at 126 mills for those weighing not more than 3 pounds per thousand, while the new category will be taxed at a lower rate of 63 mills for the same weight.

Additionally, the bill introduces an inventory tax that will be imposed on cigarettes held in inventory at the time of any increase in the tax rates. This tax applies to cigarettes for which the tax has already been paid at the previous rate and to unaffixed stamps in the possession of distributors. The bill outlines the responsibilities of individuals in possession of these cigarettes or stamps to report and pay the tax within 30 days of the effective date of any tax increase. Overall, the bill aims to update the tax structure to account for new tobacco products and ensure compliance with tax obligations.

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