HB357 Summary

• Defines "heated tobacco products" as products containing tobacco that produce inhalable aerosol by heating without combustion or with heat from a source that primarily heats rather than burns tobacco.

• Establishes a tax of $0.017 per single-use consumable unit on heated tobacco products and $0.017 per cigarette intended to be heated, effective November 1, 2025.

• Requires heated tobacco products to be stamped like other tobacco products and included in existing reporting and compliance requirements for wholesalers and retailers.

• Extends county and municipal tobacco tax authority to heated tobacco products, with local taxes equaling half the state rate where local tobacco taxes already exist.

• Expands definitions of "cigarette" to include cigarettes intended to be heated and subjects violators to existing penalties including fines of $25-$500 and potential license revocation.