Senate Bill 648 Summary

• Expands the definition of "tobacco product" to include electronic smoking devices beginning October 1, 2024, and adds "marihuana" exclusion to ensure cannabis products are not taxed as tobacco products.

• Imposes a 57% excise tax on electronic smoking devices' wholesale price effective October 1, 2024, and requires licensees with electronic smoking devices in inventory on that date to report and pay tax by November 1, 2024.

• Increases cigarette tax by an additional 75 mills per cigarette effective October 1, 2024 (from 100 mills to 175 mills total) and increases tax on other tobacco products from 32% to 57% of wholesale price, with a 50-cent per cigar cap.

• Adds electronic smoking device manufacturers as licensed entities and subjects persons mixing components for electronic smoking devices to licensing and tax requirements beginning October 1, 2024.

• Allocates new cigarette tax revenue (75 mills additional) and electronic smoking device tax revenue (57%) to the Department of Health and Human Services for tobacco prevention and cessation programs, with portions for enforcement.