bill taxing nicotine pouches, gums and lozenges as tobacco

The text as introduced · 315 words

89R11810 SRA-D

By: Parker
S.B. No. 1699

A BILL TO BE ENTITLED

AN ACT

relating to the definition of tobacco product for the purposes of

the cigars and tobacco products tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 155.001(15), Tax Code, is amended to

read as follows:

(15) "Tobacco product" means:

(A) a cigar;

(B) smoking tobacco, including granulated,

plug-cut, crimp-cut, ready-rubbed, and any form of tobacco suitable

for smoking in a pipe or as a cigarette;

(C) chewing tobacco, including Cavendish, Twist,

plug, scrap, and any kind of tobacco suitable for chewing;

(D) snuff or other preparations of pulverized

tobacco; [ or ]

(E) an article or product that contains nicotine

or synthetic nicotine, regardless of the source from which it is

derived, that is intended for human consumption [ is made of tobacco

or a tobacco substitute ] and that is not :

(i) a cigarette or an e-cigarette as

defined by Section 161.081, Health and Safety Code ; or

(ii) an article or product approved by the

United States Food and Drug Administration for use in the treatment

of nicotine or smoking addiction the packaging for which is labeled

with a drug facts panel; or

(F) an article or product without the presence of

tobacco leaf that contains nicotine, whether synthetic or derived

from tobacco, and is intended for oral consumption, whether chewed,

absorbed, dissolved, or ingested, by a means other than inhalation .

SECTION 2. The changes in law made by this Act do not affect

tax liability accruing before the effective date of this Act. That

liability continues in effect as if this Act had not been enacted,

and the former law is continued in effect for the collection of

taxes due and for civil and criminal enforcement of the liability

for those taxes.

SECTION 3. This Act takes effect September 1, 2025.