HB2742 Summary

• Amends the definition of "cigarette" in Oklahoma law to clarify that it includes rolled tobacco or substitutes wrapped in paper or substitutes, intended to be heated or burned, weighing not more than 3 pounds per thousand cigarettes.

• Applies a 50% tax exemption to cigarettes intended to be heated rather than burned under the existing cigarette excise tax provisions.

• Requires the Oklahoma Tax Commission to create distinct stamps for packages of cigarettes intended to be heated rather than burned and make them available on or before the effective date.

• Exempts certain cigarette sales from the stamp excise tax, including sales to veterans hospitals, the United States, and federally recognized Indian tribes or nations with compacts.

• Effective date: November 1, 2025.