Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0987 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	SENATE BILL 893
3	3	By Stevens
4	4
5	5	HOUSE BILL 987
6	6	By Williams
7	7
8	8
9	9	HB0987
10	10	001978
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 67,
14	14	Chapter 4, relative to heated tobacco products.
15	15
16	16	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
17	17	SECTION 1. Tennessee Code Annotated, Section 67-4-1001(2), is amended by
18	18	deleting the subsection and substituting instead the following:
19	19	(2)
20	20	(A) "Cigarette" or "cigarettes" means and includes all rolled, shredded, or
21	21	cut tobacco, or any substitute therefor, wrapped in paper, or substitute therefor,
22	22	and all rolled, shredded or cut tobacco, or any substitute therefor, wrapped in
23	23	homogenized tobacco wrapper, and being within customary cigarette sizes and
24	24	marketed in cigarette type packages;
25	25	(B) "Cigarette" includes any cigarette produced by a cigarette rolling
26	26	machine at a retail establishment;
27	27	(C) "Cigarette" includes a "heated tobacco product"; and
28	28	(D) "Cigarette" does not include smokeless nicotine products;
29	29	SECTION 2. Tennessee Code Annotated, Section 67-4-1001, is amended by adding
30	30	the following new subdivision:
31	31	( ) "Heated tobacco product" means a product containing tobacco that produces
32	32	an inhalable aerosol:
33	33	(i) By heating the tobacco by means of a device without combustion of
34	34	the tobacco; or
35	35
36	36
37	37	- 2 - 001978
38	38
39	39	(ii) By heat generated from a combustion source that only or primarily
40	40	heats rather than burns the tobacco;
41	41	SECTION 3. Tennessee Code Annotated, Section 67-4-1004, is amended by deleting
42	42	the section and substituting instead the following:
43	43	(a) Except as otherwise provided in subsection (e), the rate shall be three cents
44	44	(3¢) on each cigarette.
45	45	(b) In addition to the tax provided in subsection (a), every dealer or distributor of
46	46	tobacco products defined in this part shall pay an enforcement and administration fee to
47	47	the department of five hundredths of a cent (0.05¢) per pack of cigarettes for sale in
48	48	Tennessee. The fee shall be collected from each dealer or distributor upon the
49	49	purchase of tobacco tax stamps from the commissioner.
50	50	(c) Any wholesale dealers, jobbers, tobacco distributors, and retail dealers
51	51	having cigarette tax stamps, affixed and unaffixed, in their possession on July 1, 2007,
52	52	shall not be required to pay the additional cigarette tax on the stamps resulting from the
53	53	increase in the tax rate from ten (10) mills to three cents (3¢) on cigarettes bearing the
54	54	stamps.
55	55	(d)
56	56	(1) In addition to the tax provided in subsection (a), there shall be levied
57	57	an additional one-tenth of one cent (0.1¢) on each cigarette.
58	58	(2) Any wholesale dealers, jobbers, tobacco distributors, and retail
59	59	dealers having cigarette tax stamps, affixed and unaffixed, in their possession on
60	60	July 1, 2007, shall not be required to pay the additional cigarette tax on the
61	61	stamps resulting from the increase in the tax rate of one-tenth of one cent (0.1¢)
62	62	on cigarettes bearing the stamps.
63	63
64	64
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67	67	(e) For each cigarette that is a heated tobacco product, the tax rate shall be
68	68	fifteen hundredths of one cent (0.15¢) on each such cigarette that is a heated tobacco
69	69	product. Subsection (a) does not apply to cigarettes subject to tax under this subsection
70	70	(e).
71	71	SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.