STORAGE NAME: h0785.WMC
DATE: 3/11/2025
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FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: HB 785
TITLE: Heated Tobacco Products
SPONSOR(S): Tramont
COMPANION BILL: SB 1418 (DiCeglie)
LINKED BILLS: None
RELATED BILLS: SB 1418 (DiCeglie)
Committee References
Ways & Means
Industries & Professional
Activities
Commerce
SUMMARY
Effect of the Bill:
HB 785 excludes heated tobacco products (HTPs) and hookah tobacco from the taxes on cigarettes and other
tobacco products under ch. 210, F.S., by updating several definitions. Regulatory provisions for these products are
not changed by the bill.
Fiscal or Economic Impact:
The Revenue Estimating Conference estimated that the bill will have a recurring negative impact on General
Revenue and state trust funds of -$0.4 million each beginning in Fiscal Year 2025-26.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
ANALYSIS
EFFECT OF THE BILL:
The bill excludes heated tobacco products and hookah from the taxes on tobacco products in ch. 210, F.S.
The bill accomplishes this by updating definitions for “heated tobacco product” (Section 4), “cigarette” (Section 1),
and “tobacco product” (Sections 2, 5), to exclude heated tobacco products from taxation as cigarettes under part I
of ch. 210, F.S. (Section 1) or as tobacco products under part II of ch. 210, F.S. (Sections 3, 4).
The definitional changes still require compliance with the delivery requirements in s. 210.095, F.S., for heated
tobacco products (Section 2).
The bill renames part II of ch. 210, F.S., from “Tax on Tobacco Products other than Cigarettes or Cigars,” to “Tax on
Tobacco Products other than Cigarettes, Heated Tobacco Products, or Cigars” (Section 3), and makes other
conforming changes (Sections 6-7).
The bill takes effect on July 1, 2025 (Section 8).
FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The Revenue Estimating Conference estimated that the bill will have a recurring negative impact on General
Revenue and state trust funds of -$0.4 million each beginning in Fiscal Year 2025-26.
LOCAL GOVERNMENT:
The Revenue Estimating Conference estimated that the bill will not impact local government revenues. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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RELEVANT INFORMATION
SUBJECT OVERVIEW:
Heated Tobacco Products
Heated tobacco products (HTPs), also known as heat-not-burn products, generate an aerosol containing nicotine
by heating a tobacco-filled paper stick. The sticks are placed into a device which heats the tobacco electronically
which produces a nicotine containing aerosol inhaled by the user. The heating element does not produce enough
heat to burn the tobacco.
1 These products do not produce smoke because the tobacco is not burned or ignited.
2
The HTP IQOS, developed by Philip Morris International (PMI), is the only HTP that has received authorization by
the Federal Drug Administration. In 2021, a patent dispute led to an import ban on IQOS devices in the U.S., halting
their sales. In February 2024, PMI and British American Tobacco settled the patent litigations related to heated
tobacco products allowing for its reintroduction to the U.S. market.
3
Hookah
Hookahs are waterpipes. It includes a smoke chamber, water bowl, a pipe and a hose
4. They are used to smoke
tobacco products, by passing heated air through the specially made tobacco mixture and through a water-filled
chamber.
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Taxation of Tobacco Products
Taxes are imposed on the sale of cigarettes and other tobacco products in Florida. The tax is paid by the wholesale
dealer at the time of first sale within the state. For cigarettes of common size, the excise tax rate is $0.339 per pack,
with rates varying proportionately for cigarettes and packs of non-standard size.
6 Additionally, a $1.00 surcharge
per pack of common size cigarettes is imposed, with rates varying proportionately for cigarettes and packs of non-
standard size.
7 For other tobacco products, the tax rate is 25 percent of the wholesale price,
8 with an additional
surcharge of 60 percent of the wholesale price.
9 The taxation of tobacco is administered pursuant to chapter 210,
F.S.
Section 210.01(1), F.S., defines the term “cigarette” to mean, for purposes of taxation:
“[A]ny roll for smoking, except one of which the tobacco is fully naturally fermented, without
regard to the kind of tobacco or other substances used in the inner roll or the nature or
composition of the material in which the roll is wrapped, which is made wholly or in part of
tobacco irrespective of size or shape and whether such tobacco is flavored, adulterated or
mixed with any other ingredient.”
In s. 210.25(12), F.S., the term “tobacco product” is defined for purposes of the taxation of tobacco products other
than cigarettes or cigars. It is also used for the licensing of tobacco product manufacturers, importers, exporters,
1
Introduction to Heated Tobacco Products
2
Campaign for Tobacco Free Kids, Heated Tobacco Products, Definition and Global Market, available at:
https://assets.tobaccofreekids.org/global/pdfs/en/HTP_definition_en.pdf (last visited Jan. 20, 2024).
3
Philip Morris asks U.S. appeals court to overturn import ban on IQOS tobacco devices at:
https://www.reuters.com/legal/litigation/philip-morris-asks-us-appeals-court-overturn-import-ban-iqos-tobacco-devices-
2022-10-03/?utm_ (last visited March 8, 2025)
4
Mayo Clinic: Is hookah smoking safer than smoking cigarettes? (last visited March 9, 2025)
5
Facts about Hookah (last visited March 9, 2025)
6
Section 210.02, F.S.
7
Section 210.011, F.S.
8
Section 210.30, F.S.
9
Section 210.276, F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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distributing agents, or wholesale dealers under part II of ch. 210, F.S. In this context, the term “tobacco products”
means:
“[L]oose tobacco suitable for smoking; snuff; snuff flour; cavendish; plug and twist tobacco;
fine cuts and other chewing tobaccos; shorts; refuse scraps; clippings, cuttings, and
sweepings of tobacco, and other kinds and forms of tobacco prepared in such manner as to be
suitable for chewing; but ‘tobacco products’ does not include cigarettes, as defined by s.
210.01(1), or cigars.”
Regulation of Tobacco Products
The definition of “tobacco products” in s. 569.002(6), F.S., is limited to the regulation of tobacco products by the
Department of Business and Professional Regulation (DBPR) under ch. 569, F.S.
Dealer Permits
Section 569.003, F.S., requires a retail tobacco products dealer to acquire a permit from the division for each place
of business where tobacco products are sold, including sales made through a vending machine.
Section 210.15, F.S., also requires a permit for every person, firm, or corporation desiring to engage in business as a
manufacturer, importer, exporter, distributing agent, or wholesale dealer of cigarettes within Florida. To qualify
for a permit, a person must be of good moral character and not less than 21 years of age to qualify. In addition,
permits to corporations may be issued only to corporations whose officers are of good moral character and not less
than 21 years of age.
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Delivery Requirements for Mail Order, Internet, Other Remote Sales of Tobacco Products
Section 210.095(5), F.S., provides requirements for the delivery of mail order, Internet, and other remote sales of
tobacco products, including age verification requirements. All such deliveries are defined as “delivery sales.”
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Specific notice and shipping requirements are provided for all delivery sales, whether in-state or out-of-state. Each
person who mails, ships, or otherwise delivers tobacco products in connection with an order for a delivery sale is
required to:
Include, as part of the shipping documents, in a clear and conspicuous manner, the following statement:
“Tobacco Products: Florida law prohibits shipping to individuals who are not 21 years of age or older and
requires the payment of all applicable taxes.”
Use a method of mailing, shipping, or delivery which obligates the delivery service to:
o Require the signature of an adult who resides at the delivery address.
o Require proof that the individual accepting delivery is either the addressee or the adult designated
by the addressee.
o Provide to the delivery service, if such service is used, evidence of full compliance with
requirements for the collection and remittance of all taxes imposed on tobacco products by this
state with respect to the delivery sale.
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OTHER RESOURCES:
CDC
Introduction to Heated Tobacco Products
Hookahs | Smoking and Tobacco Use | CDC
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Section 210.15(2)(b), F.S.
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Section 210.095(1)(b), F.S.
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Section 210.095(5), F.S. JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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BILL HISTORY
COMMITTEE REFERENCE ACTION DATE
STAFF
DIRECTOR/
POLICY CHIEF
ANALYSIS
PREPARED BY
Ways & Means Committee Aldridge Hallaian
Industries & Professional Activities
Subcommittee
Commerce Committee