Tennessee HB0987 amends tax definitions and rates for cigarettes and heated tobacco products.

Tennessee HB0987 amends the definition of "cigarette" to include heated tobacco products, which are tobacco products that produce an inhalable aerosol by heating the tobacco without combustion. The bill sets a tax rate of fifteen hundredths of one cent (0.15¢) on each heated tobacco product, while maintaining the existing three cents (3¢) tax rate on traditional cigarettes. Additionally, it introduces an enforcement and administration fee for tobacco product dealers and distributors. The changes take effect immediately upon becoming law.

Tennessee HB0987 amends tax definitions and rates for cigarettes and heated tobacco products.

Tennessee HB0987 amends the definition of "cigarette" to include heated tobacco products, which are tobacco products that produce an inhalable aerosol by heating the tobacco without combustion. The bill sets a tax rate of fifteen hundredths of one cent (0.15¢) on each heated tobacco product, while maintaining the existing three cents (3¢) tax rate on traditional cigarettes. Additionally, it introduces an enforcement and administration fee for tobacco product dealers and distributors. The changes take effect immediately upon becoming law.