AN ACT RELATING TO TAXATION -- CIGARETTE, OTHER TOBACCO PRODUCTS, AND ELECTRONIC NICOTINE-DELIVERY SYSTEM PRODUCTS (Reduces the cigarette tax imposed by 75% for any modified risk tobacco product as defined in § 21 U.S.C. 387 k as a tobacco product sold/distributed to reduce the harm/risk of tobacco-related disease associated with commercially marketed tobacco products.)

S2360

2026 -- S 2360
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LC004196
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO TAXATION -- CIGARETTE, OTHER TOBACCO PRODUCTS, AND
ELECTRONIC NICOTINE-DELIVERY SYSTEM PRODUCTS

Introduced By:
Senators DiPalma, Murray, de la Cruz, and Thompson

Date Introduced:
January 30, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 44-20-12 of the General Laws in Chapter 44-20 entitled "Cigarette,
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Other Tobacco Products, and Electronic Nicotine-Delivery System Products" is hereby amended
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to read as follows:
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44-20-12. Tax imposed on cigarettes sold.
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(a)
A tax is imposed on all cigarettes sold or held for sale in the state. The payment of the
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tax to be evidenced by stamps, which may be affixed only by licensed distributors to the packages
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containing such cigarettes. Any cigarettes on which the proper amount of tax provided for in this
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chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under
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this chapter. The tax is at the rate of two hundred twenty-five (225) mills for each cigarette.
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(b) Any tax imposed under this chapter shall be reduced by seventy-five percent (75%) for
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any product the Secretary of the United States Department of Health and Human Services
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determines to be a modified risk tobacco product pursuant to the federal Food, Drug, and Cosmetic
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Act, 21 U.S.C § 387k. For the purpose of this section, "modified risk tobacco product" means any
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tobacco product that is sold or distributed for use to reduce the harm or the risk of tobacco-related
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disease associated with commercially marketed tobacco products.
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SECTION 2. This act shall take effect upon passage.
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LC004196
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- CIGARETTE, OTHER TOBACCO PRODUCTS, AND
ELECTRONIC NICOTINE-DELIVERY SYSTEM PRODUCTS
***
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This act would reduce the cigarette tax imposed by seventy-five percent (75%) for any
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modified risk tobacco product as defined in § 21 U.S.C. 387K as a tobacco product sold or
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distributed to reduce the harm or risk of tobacco-related disease associated with commercially
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marketed tobacco products.
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This act would take effect upon passage.
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LC004196
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