Senate bill seeks substantial tax increases on cigars, pipe tobacco, RYO tobacco, chewing tobacco, moist snuff and snus

Senate Bill Number 826 proposes tax increases on cigarettes, taxed cigars, pipe tobacco, RYO tobacco, chewing tobacco, moist snuff and snus (see table for tax increase amounts). Bill 826 would propose to tax on an estimated per use basis "any other product that has been determined by the FDA to be a tobacco product based on the agency's authority under the Family Smoking Prevention and Tobacco Control Act," says Tom Briant, executive director of NATO; a tax level equivalent to the federal tax on cigarettes.


The bill was introduced by five senators: Senator Harry Reid (D-Nevada), Senator Richard Blumenthal (D-Conn.), Senator Tom Harkin (D-Iowa), Senator Frank Lautenberg (D-N.J.), and Senator Richard Durbin (D-Ill.).

Bill 826 would also require manufacturers to affix a “unique identification marking” on any package containing tobacco products before the product is released for sale in the U.S. This marker must include a unique serial number or tracking code so that the product can be tracked and traced by federal authorities in order to curb the illegal trafficking of cigarettes and tobacco products.


PRODUCT

CURRENT FEDERAL TAX RATES

PROPOSED FEDERAL TAX RATE

Cigarettes

$1.01/pack

$1.01/pack

Little cigars

$1.01/pack

$1.01/pack on weights up to 4.5 lbs per thousand

Pipe tobacco

$2.8311/lb.

$49.55/lb.

Chewing tobacco

$0.5033/lb.

$10.37/lb.

Moist snuff

$1.51/lb.

$25.91/lb.

Roll Your Own

$24.78/lb.

$49.55/lb.

Snus/Single unit

--

$0.0975/pounch or unit