Relating to: the cigarette excise tax and cigarettes that involve heating tobacco without combustion. (FE)

AB 511 classifies tobacco products into two categories for tax purposes: traditional cigarettes (burning tobacco) and "heating tobacco" products (tobacco heated without combustion, excluding vapor products). It imposes a $0.63 per cigarette tax on lighter heating tobacco products (≤3 pounds per thousand) and $1.26 on heavier ones, while traditional cigarettes face lower base rates ($0.126/$0.252) with federal tax adjustments. The bill also requires distributors to pay an inventory tax on existing stock when rates increase, due within 30 days of the rate change. This directly affects tobacco manufacturers, distributors, and retailers selling these products in the state. The legislation modifies existing tax structures without banning products or making health claims.