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Excise tax

A tax imposed on the manufacture, sale, or use of certain goods or services within a country, rather than on income or property. This bill applies excise taxes to tobacco and nicotine products.

Tax parity

The idea of taxing similar products or services at the same rate or in a comparable manner, ensuring fairness and equal treatment under tax law. This bill aims for tax parity across different tobacco products.

Roll-your-own tobacco

Loose tobacco sold for consumers to manually create their own cigarettes or other tobacco products.

Smokeless tobacco (discrete single-use units)

Tobacco products that are not smoked, such as pouches, lozenges, or tablets, designed for single use without burning.

Taxable nicotine

Nicotine that has been extracted, concentrated, or synthesized, and is subject to the new federal excise tax, primarily referring to nicotine used in vaping products.

Internal Revenue Code of 1986

The main body of federal tax law in the United States, which this bill proposes to amend to change tobacco and nicotine tax rates.

Ad valorem tax