The bill proposes the repeal of a state excise tax on tobacco products other than cigarettes and removes the mandate regarding the disposal of confiscated cigarettes. It includes several amendments to existing laws, specifically updating definitions and compliance requirements related to the sale and distribution of cigarettes. Notably, the term "wholesaler" is redefined to clarify that it applies regardless of physical location, and the definition of "cigarette" is expanded to include specific criteria for what constitutes a cigarette. Additionally, the bill preempts local governments from imposing taxes on the sale of cigarettes, while still allowing them to regulate public use.

Furthermore, the bill outlines licensing requirements for wholesalers, cigarette importers, and manufacturers, mandating that they obtain a license to sell cigarettes in the state. It establishes record-keeping requirements for wholesalers and details penalties for non-compliance, including fines and potential imprisonment for selling cigarettes without a license. The bill also allows for the sale of seized cigarettes by the department to licensed wholesalers, with proceeds going to the state general fund. The effective date for the implementation of this act is set for July 1, 2025.

Statutes affected:
Introduced: 39-18-101, 39-18-103, 39-18-106, 39-18-107, 39-18-108, 39-18-102, 39-18-104, 39-18-111