IA HF1035

Defines "heated tobacco product" as a product containing tobacco that produces an inhalable aerosol by heating tobacco through a device without combustion, and includes these products within the definition of "cigarette" for regulatory and tax purposes

Imposes a tax of 3.4 cents per consumable unit on heated tobacco products, compared to the standard cigarette tax of 6.8 cents per cigarette

Excludes heated tobacco products from the 22 percent wholesale price tax that applies to other tobacco products such as cigars, chewing tobacco, and snuff

Amends the definition of "vapor product" to clarify it applies to liquids rather than "other substances" and explicitly excludes vapor products from the heated tobacco product category

Subjects heated tobacco products to cigarette sales regulations under Code chapter 421B, including basic cost determination and below-cost sales prohibitions