UT HB0337

Increases cigarette tax to a flat rate of 11 cents per cigarette, eliminating the previous weight-based distinction between cigarettes weighing more or less than three pounds per thousand

Raises the tax rate on electronic cigarettes, prefilled electronic cigarettes, nontherapeutic nicotine device substances, and prefilled nontherapeutic nicotine devices from 56% to 71% of the manufacturer's sales price

Replaces the weight-based tax ($1.83 per ounce) on alternative nicotine products with a new structure: nicotine pouch products are taxed at $1 per product plus 5 cents per pouch over 20, while non-pouch alternative nicotine products are taxed at 73% of the manufacturer's sales price

Imposes a transitional inventory tax on cigarettes in stock as of July 1, 2026, equal to the difference between the new and old tax rates, with returns due by July 31, 2026

Directs the Division of Finance to transfer tax revenue from electronic cigarettes, nontherapeutic nicotine devices, and alternative nicotine products exceeding $15,900,000 annually to the General Fund