Senate Bill 544 proposes modifications to the existing cigarette excise tax laws in Wisconsin, specifically addressing the taxation of traditional cigarettes and a new category of products that involve heating tobacco without combustion. The bill renumbers and amends several sections of the statutes, including the definition of a cigarette to include both traditional rolls of tobacco and those wrapped in non-tobacco substances intended for heating. 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 products weighing not more than 3 pounds per thousand is set at 63 mills per cigarette, while those weighing more than 3 pounds are taxed at 126 mills.

Additionally, the bill establishes an inventory tax that will be imposed on cigarettes held in inventory at the time of any increase in the excise 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 products to report and pay the tax within a specified timeframe following any rate increase. Overall, the legislation aims to modernize the tax framework for tobacco products in response to evolving market trends.

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