SB 0781 Summary

• Expands Michigan's tobacco tax to include alternative nicotine products, electronic smoking devices, and consumable materials beginning January 1, 2021.

• Establishes 18% tax on consumable materials (liquid nicotine solutions) and 50 cents per ounce tax on alternative nicotine products, effective January 1, 2021.

• Adjusts cigar tax caps: 50 cents per cigar through October 31, 2020; 65 cents per cigar November 1, 2020-October 31, 2021; 75 cents per cigar from November 1, 2021 forward.

• Allocates consumable material tax revenue beginning October 1, 2021 as follows: $250,000 to Department of Treasury for enforcement, $2.5 million to local health departments, $2.5 million to Department of Health and Human Services for youth tobacco enforcement, with remainder to general fund.

• Requires tracking and segregation of pricing for consumable materials when sold with electronic smoking devices in records, invoices, and bills of lading.

• Enactment contingent on passage of SB 782, SB 783, and SB 784.