HB 1661 Summary

• Imposes a 50 percent excise tax on wholesalers for each modified risk tobacco product sold, used, or possessed, calculated as 50 percent of the otherwise applicable tax under section 245-3.

• Defines "modified risk tobacco product" as any product for which a modified risk tobacco product order has been issued by the Secretary of the U.S. Department of Health and Human Services pursuant to 21 U.S.C. § 387k(g).

• Expands the definition of "tobacco products" to include e-liquids and electronic smoking devices, bringing them under Hawaii's Cigarette Tax and Tobacco Tax Law.

• Defines "e-liquid" as any liquid or similar substance designed or intended for use in electronic smoking devices, while explicitly excluding prescription drugs and medical cannabis products.

• Effective date: July 1, 2022.