The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Regulated Industries
BILL: CS/SB 1418
INTRODUCER: Regulated Industries Committee and Senator DiCeglie
SUBJECT: Heated Tobacco Products
DATE: March 21, 2025
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Oxamendi Imhof RI Fav/CS
2. FT
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1418 exempts heated tobacco products from the taxes on cigarettes and other tobacco
products in ch. 210, F.S.
The bill defines the term “heated tobacco product” to mean “a product containing tobacco which
produces an inhalable aerosol by heating the tobacco, and such heating, during normal use, does
not involve any form of burning or combustion and does not produce any smoke.”
The bill excludes heated tobacco products from the definition for the term “cigarette,” in the
context of the taxation of tobacco products under part I of ch. 210, F.S., and from the definition
for the term “tobacco products” in the context of the taxation of tobacco products other than
cigarettes and cigars. By excluding heated tobacco products from the meaning of cigarettes and
other tobacco products, heated tobacco products would not be subject to taxation as cigarettes or
other tobacco products under parts I and II of ch. 210, F.S., respectively.
A tax and a surcharge are imposed on cigarettes at different rates depending on the weight of the
tobacco or the number of cigarettes in a carton. Under current law, tobacco products other than
cigarettes, e.g., products such as snuff or chewing tobacco, are taxed at the rate of 25 percent of
the wholesale sales price. A surcharge tax is also imposed on those products at the rate of 60
percent of the wholesale sales price.
REVISED: BILL: CS/SB 1418 Page 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.”
The bill subjects heated tobacco products to the same delivery requirements that are applicable
under current law to other tobacco products sold by mail order, the Internet, or other remote
sales, including age verification requirements.
The bill amends the definition for the term “tobacco product” in s. 569.002(8), F.S., relating to
the regulation of retail tobacco permit dealers, to include heated tobacco products. Under the bill,
persons who engage in the retail sale of heated tobacco products must have a retail tobacco
products dealer permit issued by the Division of Alcoholic Beverages and Tobacco.
The bill takes effect on July 1, 2025.
II. Present Situation:
Regulation of Tobacco Products and Nicotine Dispensing Devises
The Division of Alcoholic Beverages and Tobacco (division) within the Department of Business
and Professional Regulation (DBPR) is the state agency responsible for the regulation and
enforcement of tobacco products under part I of ch. 569, F.S., and nicotine products under part II
of ch. 569, F.S.
Tobacco Products Definitions
Section 210.01(1), F.S., defines the term “cigarette” to mean:
any 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.
Section 569.002(6), F.S., defines the term “tobacco products” to include loose tobacco leaves
and products made from tobacco leaves, in whole or in part, and cigarette wrappers, which can
be used for smoking, sniffing, or chewing, in the context of the taxation of cigarettes under part I
of ch. 210, F.S.
Section 210.25(12), F.S., provides a separate definition for the term “tobacco products” in the
context of the taxation of tobacco products other than cigarettes or cigars. It provides for the
licensing of tobacco product manufacturers, importers, exporters, distributing agents, or
wholesale dealers under part II of ch. 210, F.S. In this context, the term “tobacco products”
means:
loose 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 BILL: CS/SB 1418 Page 3
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.
The definition of “tobacco products” in s. 569.002(6), F.S., is limited to the regulation of tobacco
products by the division under ch. 569, F.S., and does not affect the taxation of such products
under ch. 210, F.S.
Taxation of Tobacco Products Other than Cigarettes or Cigars
Part II of ch. 210, F.S., imposes a tax and a surcharge tax on tobacco products other than
cigarettes or cigars. Cigarettes are taxed under part I of ch. 210, F.S. Cigars are not subject to a
tax.
Section 210.30(1), F.S., imposes a tax on tobacco products other than cigarettes or cigars and
upon any person engaged in business as a distributor of such tobacco products at the rate of 25
percent of the wholesale sales price. The tax is levied at the time the distributor:
• Brings or causes to be brought into Florida from without the state tobacco products for sale;
• Makes, manufactures, or fabricates tobacco products in Florida for sale in Florida; or
• Ships or transports tobacco products to retailers in Florida, to be sold by those retailers.
If the tax is not paid by the distributor, the tax is imposed upon the use or storage by consumers
of such tobacco products in Florida and upon consumers at the rate of 25 percent of the cost of
such tobacco products.
Section 210.276(1), F.S., imposes a surcharge tax on tobacco products other than cigarettes or
cigars and upon any person engaged in business as a distributor of such tobacco products at the
rate of 60 percent of the wholesale sales price. The surcharge is levied at the same time the tax in
s. 210.30, F.S., is levied on the distributor.
The surcharge is not levied on tobacco products shipped or transported outside Florida for sale or
use outside Florida.
Section 210.25(5), F.S., defines the term “distributor” to mean:
• Any person engaged in the business of selling tobacco products in this state who brings, or
causes to be brought, into this state from outside the state any tobacco products for sale;
• Any person who makes, manufactures, or fabricates tobacco products in this state for sale in
Florida; or
• Any person engaged in the business of selling tobacco outside this state who ships or
transports tobacco products to retailers in this state to be sold by those retailers.
Section 210.25(14), F.S., defines the term “wholesale sales price” to mean the sum of:
• The full price paid by the distributor to acquire the tobacco products, including charges by
the seller for the cost of materials, the cost of labor and service, charges for transportation
and delivery, the federal excise tax, and any other charge, even if the charge is listed as a
separate item on the invoice paid by the distributor, exclusive of any diminution by volume
or other discounts, including a discount provided to a distributor by an affiliate; and BILL: CS/SB 1418 Page 4
• The federal excise tax paid by the distributor on the tobacco products if the tax is not
included in the full price.
Retail Tobacco Products Dealer Permits
A person must obtain a retail tobacco products dealer permit from the division for each place of
business where tobacco products are sold, including sales made through a vending machine.
1
The
fee for an annual permit is established by the division in rule at an amount to cover the regulatory
costs of the program, not to exceed $50. The fees are deposited into the Alcoholic Beverage and
Tobacco Trust Fund within the DBPR.
2
Mail Order, Internet, Other Remote Sales of Tobacco Products, and Tobacco Products
Permits
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.”
3
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 and obtain proof of
the legal minimum purchase age of the individual accepting delivery, if the individual
appears to be under 30 years of age.
o Require proof that the individual accepting delivery is either the addressee or the adult
designated by the addressee, in the form of a valid, government-issued identification card
bearing a photograph of the individual who signs to accept delivery of the shipping
container.
• 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.
4
If a person accepts a purchase order for a delivery sale and delivers the tobacco products without
using a delivery service, the person must comply with all of the requirements that apply to a
delivery service.
5
Before making sales or shipping orders, entities must provide specific notice to
1
Section 569.003, F.S.
2
Section 569.003(1)(c), F.S.
3
Section 210.095(1)(b), F.S.
4
Section 210.095(5), F.S.
5
Id. BILL: CS/SB 1418 Page 5
the division as to shipper and receiver, with monthly reporting.
6
There are requirements specific
to purchase orders.
7
Section 210.095(8), F.S., provides that the penalty for the following violations of the delivery
sale requirements is a misdemeanor of the second degree:
8
• A delivery sale delivers tobacco products, on behalf of a delivery service, to an individual
who is under 21 years of age.
• A violation of any provision in s. 210.095, F.S., by an individual who is under 21 years of
age.
Section 210.15, F.S., requires 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 have a permit issued by the division. 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 may be issued
only to corporations whose officers are of good moral character and not less than 21 years of
age.
9
Nicotine Products
Section 569.31(3), F.S., defines the term “nicotine dispensing device” to mean:
any product that employs an electronic, chemical, or mechanical means to
produce vapor or aerosol from a nicotine product, including, but not limited to, an
electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or other
similar device or product, any replacement cartridge for such device, and any
other container of nicotine in a solution or other form intended to be used with or
within an electronic cigarette, electronic cigar, electronic cigarillo, electronic
pipe, or other similar device or product.
Section 569.31(4), F.S., defines the term “nicotine product” to mean:
any product that contains nicotine, including liquid nicotine, which is intended for
human consumption, whether inhaled, chewed, absorbed, dissolved, or ingested
by any means. The term also includes any nicotine dispensing device. The term
does not include a:
(a) Tobacco product, as defined in s. 569.002, F.S.;
(b) Product regulated as a drug or device by the United States Food and Drug
Administration under Chapter V of the Federal Food, Drug, and Cosmetic Act; or
(c) Product that contains incidental nicotine.
(Emphasis added.)
Nicotine products, including nicotine dispensing devises such as electronic cigarettes (also
commonly known as “vapes”), may contain nicotine, which comes from tobacco, but they do not
6
Section 210.095(6), F.S.
7
Section 210.095(7), F.S.
8
Section 775.082, F.S., provides that the penalty for a misdemeanor of the second degree is punishable by a term of
imprisonment not to exceed 60 days. Section 775.083, F.S., provides that the penalty for a misdemeanor of the second degree
is punishable by a fine not to exceed $500.
9
Section 210.15(2)(b), F.S. BILL: CS/SB 1418 Page 6
contain tobacco. It is a non-tobacco “e-liquid” that is heated and aerosolized for inhalation by the
user of the device.
10
Retail Nicotine Products Dealer Permit
A retail nicotine products dealer permit from the division is required for each place of business
where nicotine products are sold, including sales made through a vending machine.
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There is no
fee for the permit. A person must be 21 years of age to qualify for a retail nicotine products
dealer permit.
12
Heated Tobacco Products
Heated tobacco products heat a compressed stick or pod of tobacco and produce an inhalable
vapor or aerosol. These products do not produce smoke because the tobacco is not burned or
ignited.
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It is not clear that heated tobacco products are subject to taxation under ch. 210, F.S.,
as cigarettes or other tobacco products because the definitions for the terms cigarettes and
tobacco products under ch. 210, F.S., do not appear to describe heated tobacco products, e.g.,
heated tobacco products are not smoked or chewed.
III. Effect of Proposed Changes:
The bill exempts heated tobacco products from the taxes on tobacco products in ch. 210, F.S.
The definition of the term “cigarette” in s. 210.01(1), F.S., is revised by the bill to provide that
the term does not include heated tobacco products. By excluding heated tobacco products from
the meaning of cigarettes, the bill does not tax heated tobacco products as cigarettes under part I
of ch. 210, F.S.
The bill amends s. 210.25, F.S., to define the term “heated tobacco products” to mean “a product
containing tobacco which produces an inhalable aerosol by heating the tobacco, and such
heating, during normal use, does not involve any form of burning or combustion and does not
produce any smoke.” without combustion of the tobacco or by the heat generated from a
combustion source that only heats rather than burns the tobacco.”
The bill changes the term “tobacco products” in s. 210.25, F.S., to “tobacco product” and revises
the definition of the term to exclude any heated tobacco product. By excluding heated tobacco
products from the meaning of the term “tobacco product,” heated tobacco products would not be
subject to taxation as tobacco products under part II of ch. 210, F.S.
The bill also revises the definition of the term “tobacco product” in s. 210.095, F.S., to include
heated tobacco products. By including heated tobacco products within the meaning of tobacco
10
American Cancer Society, What Do We Know About E-cigarettes? at: https://www.cancer.org/cancer/risk-
prevention/tobacco/e-cigarettes-vaping/what-do-we-know-about-e-cigarettes.html (last visited Jan. 17, 2024).
11
Section 569.32, F.S.
12
Section 569.32(2)(a), F.S.
13
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 Mar. 11, 2025). BILL: CS/SB 1418 Page 7
products in this provision, the bill applies the delivery sale requirements in this section to heated
tobacco products.
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.”
The bill amends the definition for the term “cigarette” in s. 210.01(1), F.S., to provide that the
term does not include heated tobacco products.
The bill amends the definition for the term “tobacco product” in s. 569.002(8), F.S., to include
heated tobacco products as defined in s. 210.25, F.S. The bill also reenacts the definition for the
term “nicotine product” in s. 569.31(4), F.S., to incorporate the revision in the bill to the
definition of the term “tobacco product” in s. 569.002(8), F.S.
Under the bill, a person who engages in the retail sale of heated tobacco products must have a
retail tobacco products dealer permit.
The bill takes effect on July 1, 2025.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
Section 19(a), Article VII of the State Constitution limits the authority of the legislature
to enact legislation that imposes a new state tax or fee by requiring such legislation to be
approved by a two-thirds vote in each chamber of the legislature. Section 19(e), Article
VII of the Florida Constitution provides that a state tax or fee imposed, authorized, or
raised must be contained in a separate bill that contains no other subject. SB 1418
requires dealers of heated tobacco products to apply for a retail tobacco dealer permit, ,
which may cost not more than $50 for the annual permit. By imposing a permit fee for
the retail sale of a product for which the permit fee does not currently apply, the bill may
be imposing a new fee and may violate the single-subject requirement of s. 19(a), Article
VII of the State Constitution. BILL: CS/SB 1418 Page 8
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The bill exempts heated tobacco products from the taxes and surcharge taxes in parts I
and II of ch. 210, F.S.
The bill requires retail dealers of heated tobacco products to obtain a retail tobacco dealer
permit, which may cost not more than $50 for the annual permit.
C. Government Sector Impact:
The Revenue Estimating Conference determined that HB 785, which is a related similar
bill, would have a negative fiscal impact on the tobacco tax and surcharge in the amount
of $700,000 cash and $800,000 recurring in Fiscal Year 2025-2026 due to the anticipated
immediate impact on hookah
14
tobacco and new heated tobacco products entering the
market.
15
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 210.01, 210.095,
210.25, 569.002, and 951.22.
This bill reenacts section 569.31of the Florida Statutes.
14
Hookah are waterpipes used to smoke specially made tobacco mixtures that are often flavored. They work by passing
charcoal-heated air through the tobacco mixture and a water-filled chamber before the smoke is inhaled by the user through a
tube and mouthpiece. American Lung Association, Facts About Hookah, https://www.lung.org/quit-smoking/smoking-
facts/health-effects/facts-about-
hookah#:~:text=Hookahs%20are%20waterpipes%20that%20are,through%20a%20tube%20and%20mouthpiece (last visited
Mar. 18, 2025).
15
Revenue Estimating Conference, Revenue Impact Results for HB 785, Mar. 7, 2025, available at:
https://edr.state.fl.us/Content/conferences/revenueimpact/archives/2025/_pdf/page87-89.pdf (last visited Mar. 18, 2025). BILL: CS/SB 1418 Page 9
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Regulated Industries on March 19, 2025:
The CS revises the definition for “heated tobacco product” to provide that the heating of
the “tobacco, during normal use, does not involve any form of burning or combustion and
does not produce any smoke.”
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.