Senate Bill 544 proposes modifications to the existing cigarette excise tax laws in Wisconsin, specifically addressing the taxation of cigarettes that involve heating tobacco without combustion. The bill redefines a cigarette to include not only traditional rolls of tobacco wrapped in paper but also those wrapped in other substances that heat tobacco without burning it. The bill establishes a separate excise tax structure for these new categories of cigarettes, with specific tax rates based on their weight and length. For instance, the tax on cigarettes that involve heating without combustion weighing not more than 3 pounds per thousand is set at 63 mills, while those weighing more than 3 pounds per thousand will be taxed at 126 mills.

Additionally, the bill introduces an inventory tax that will be imposed on cigarettes held in inventory for sale or resale when there is an increase in the tax rates. This tax applies to cigarettes on which the previous tax rate has been paid 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 a specified timeframe following any rate increase. Overall, the bill aims to modernize the taxation framework for tobacco products in response to evolving consumption methods.

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