Nicotine Product Tax Amendments

The tax rate for cigarettes was increased to 18.5 cents per cigarette, effective July 1, 2026.

New funding was added to the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account to create 10 law enforcement officer positions in specific cities.

Specific dollar amounts were allocated to various departments for tobacco prevention, cessation, cancer research, and law enforcement services.

Tax rates for moist snuff and alternative nicotine products changed from a fixed fee per ounce to a percentage of the manufacturer's sales price.

The effective date for the bill was set to July 1, 2026, and the repealer for modified risk tobacco products was delayed to July 1, 2030.

Section headers and code references were updated to include effective dates and partial repealer information.

The effective date for the new tax rates and transitional inventory tax is set to July 1, 2026, replacing previous dates.

Revenue from taxes on electronic cigarettes, nontherapeutic nicotine devices, and alternative nicotine products will be transferred to the General Fund rather than specific restricted accounts.

The specific dollar amounts allocated to the Cigarette Tax Restricted Account for health programs and research are removed from the text.

A new transitional inventory tax is imposed on cigarettes sold with old, lower tax stamps after the new rates take effect.

Affixing tax stamps reflecting the old, lower tax rates becomes unlawful after the new effective date.

The tax calculation method for alternative nicotine products changes from a weight-based rate to a per-pouch fee or a percentage of the manufacturer's sales price.

The effective date for the new tax rates and transitional inventory tax is set to July 1, 2026.

Tax rates on cigarettes, electronic cigarettes, and nontherapeutic nicotine devices are increased.

The tax calculation for moist snuff changes from a weight-based rate to a percentage of the manufacturer's sales price.

A new tax is imposed on nicotine pouch products, charging $1 per product plus 5 cents for every pouch over 20.

A transitional inventory tax is levied on cigarettes sold after July 1, 2026, that were previously taxed at the lower rate.

Definitions for various nicotine products are updated to align with state law.

Added a new section (59-14-102) to formally define terms such as 'alternative nicotine product,' 'cigarette,' 'cigarette rolling machine,' and 'moist snuff' to ensure consistent application of tax laws.

Changed the effective date of the bill from July 1, 2026, to July 1, 2025, accelerating when the new tax rules take effect.

Replaced the weight-based tax calculation for moist snuff with a new method based on a percentage of the manufacturer's sales price.

Replaced the weight-based tax calculation for alternative nicotine products with a tiered system: a per-product tax for items in pouches and a percentage-of-price tax for other items.

Introduced a transitional inventory tax on cigarettes to help businesses manage the sudden increase in tax rates.

Increased the tax rates levied on cigarettes, electronic cigarettes, and nontherapeutic nicotine devices to generate higher revenue for state programs.

Updated the list of affected Utah Code sections to include 59-14-102 and 59-14-215, reflecting the addition of new definitions and clarifications.

Increased the per-cigarette tax rate from 15 cents to 16 cents.

Changed the moist snuff tax calculation from a fixed $1.83 per ounce to 73% of the manufacturer's sales price.

Changed the alternative nicotine product tax calculation from a fixed $1.83 per ounce to 56% of the manufacturer's sales price.

Updated the list of amended Utah Code sections to reflect recent legislative changes.

The cigarette tax rate was increased from a weighted average of 8.5 to 9.963 cents to a flat rate of 15 cents per cigarette.

A $2,000,000 annual appropriation for law enforcement officer positions was removed from the bill.

The tax on moist snuff and alternative nicotine products changed from a rate of $1.83 per ounce to a rate of 56% of the manufacturer's sales price.

Provisions providing a tax rate reduction for certain modified risk tobacco products were repealed.

Specific distribution line items and coordination clauses referencing other bills (H.B. 229 and S.B. 98) were removed from the text.

Cigarette tax rates were modified, changing the base rate and removing the distinction between weight classes (under and over three pounds per thousand cigarettes).

The tax calculation for moist snuff and alternative nicotine products was changed from a per-ounce weight-based rate to a percentage of the manufacturer's sales price.

The bill now explicitly appropriates $2,000,000 in the long title, whereas the previous version listed 'None' under money appropriated.

Provisions providing a tax rate reduction for certain modified risk tobacco products were repealed.

Coordination clauses were added to incorporate changes made to Section 59-14-807 by other bills (H.B. 229 and S.B. 98).