Bill Text: IA HSB725 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to heated tobacco products, and providing for taxation of heated tobacco products.
Spectrum: Committee Bill
Status: (Introduced) 2024-03-19 - Subcommittee recommends passage. Vote Total: 2-1. [HSB725 Detail]
Download: Iowa-2023-HSB725-Introduced.html
House
Study
Bill
725
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
KAUFMANN)
A
BILL
FOR
An
Act
relating
to
heated
tobacco
products,
and
providing
for
1
taxation
of
heated
tobacco
products.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
421B.2,
subsection
2,
Code
2024,
is
1
amended
to
read
as
follows:
2
2.
“Cigarettes”
shall
mean
and
include
any
roll
for
smoking,
3
made
wholly
or
in
part
of
tobacco,
irrespective
of
size
or
4
shape
and
whether
or
not
such
tobacco
is
flavored,
adulterated
5
or
mixed
with
any
other
ingredient,
the
wrapper
or
cover
of
6
which
is
made
of
paper
or
any
other
substance
or
material
7
except
tobacco
,
and
include
a
heated
tobacco
product
as
defined
8
in
section
453A.1
.
9
Sec.
2.
Section
453A.1,
subsection
4,
Code
2024,
is
amended
10
to
read
as
follows:
11
4.
“Cigarette”
means
any
roll
for
smoking
made
wholly
or
in
12
part
of
tobacco,
or
any
substitute
for
tobacco,
irrespective
of
13
size
or
shape
and
irrespective
of
tobacco
or
any
substitute
for
14
tobacco
being
flavored,
adulterated,
or
mixed
with
any
other
15
ingredient,
where
such
roll
has
a
wrapper
or
cover
made
of
16
paper
or
any
other
material.
However,
“cigarette”
shall
not
be
17
construed
to
include
cigars
or
heated
tobacco
products
.
18
Sec.
3.
Section
453A.1,
Code
2024,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
15A.
“Heated
tobacco
product”
means
a
21
product
containing
tobacco
that
produces
an
inhalable
aerosol
22
by
heating
the
tobacco
by
means
of
a
device
without
combustion
23
of
the
tobacco
or
by
heat
generated
from
a
combustion
source
24
that
only
or
primarily
heats
rather
than
burns
the
tobacco.
25
“Heated
tobacco
product”
does
not
include
a
cigarette.
26
Sec.
4.
Section
453A.1,
subsection
28,
Code
2024,
is
amended
27
to
read
as
follows:
28
28.
“Tobacco
products”
means
cigars;
little
cigars
as
29
defined
in
section
453A.42,
subsection
6
;
cheroots;
stogies;
30
periques;
granulated;
plug
cut,
crimp
cut,
ready
rubbed,
and
31
other
smoking
tobacco;
snuff,
snuff
flour;
cavendish;
plug
and
32
twist
tobacco;
fine-cut
and
other
chewing
tobaccos;
shorts;
or
33
refuse
scraps,
clippings,
cuttings
and
sweepings
of
tobacco,
34
and
other
kinds
and
forms
of
tobacco,
prepared
in
such
manner
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as
to
be
suitable
for
chewing
or
smoking
in
a
pipe
as
a
heated
1
tobacco
product
or
otherwise,
or
both
for
chewing
and
smoking;
2
but
does
not
mean
cigarettes.
3
Sec.
5.
Section
453A.42,
subsection
16,
Code
2024,
is
4
amended
by
striking
the
subsection
and
inserting
in
lieu
5
thereof
the
following:
6
16.
“Tobacco
products”
means
the
same
as
defined
in
section
7
453A.1.
8
Sec.
6.
Section
453A.43,
subsection
2,
Code
2024,
is
amended
9
by
adding
the
following
new
paragraph:
10
NEW
PARAGRAPH
.
f.
The
taxes
imposed
by
this
subsection
11
shall
not
apply
to
heated
tobacco
products.
12
Sec.
7.
Section
453C.1,
subsection
4,
paragraph
a,
Code
13
2024,
is
amended
by
adding
the
following
new
subparagraph:
14
NEW
SUBPARAGRAPH
.
(4)
A
heated
tobacco
product
as
defined
15
in
section
453A.1.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
to
heated
tobacco
products
and
provides
20
for
taxation
of
heated
tobacco
products
as
a
tobacco
product.
21
The
bill
amends
Code
section
421B.2(2)
by
including
heated
22
tobacco
products
in
the
definition
of
cigarettes
for
the
23
purposes
of
cigarette
sales
including
the
determining
of
the
24
basic
cost
of
cigarettes
and
the
selling
of
cigarettes
at
less
25
than
cost
under
Code
chapter
421B
(cigarette
sales).
26
The
bill
amends
Code
section
453A.1(4)
to
provide
that
the
27
definition
of
“cigarette”
does
not
include
a
heated
tobacco
28
product
for
the
purposes
of
Code
chapter
453A
(cigarette
and
29
tobacco
taxes
and
regulation
of
alternative
nicotine
products
30
and
vapor
products).
31
The
bill
amends
Code
section
453A.1,
to
define
“heated
32
tobacco
product”
for
the
purposes
of
Code
chapter
453A.
Under
33
the
bill,
“heated
tobacco
product”
means
a
product
containing
34
tobacco
that
produces
an
inhalable
aerosol
by
heating
the
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tobacco
by
means
of
a
device
without
combustion
of
the
tobacco
1
or
by
heat
generated
from
a
combustion
source
that
only
or
2
primarily
heats
rather
than
burns
the
tobacco;
“heated
tobacco
3
product”
does
not
include
a
cigarette.
4
The
bill
amends
Code
section
453A.1(28)
by
including
heated
5
tobacco
products
in
the
definition
of
“tobacco
products”
for
6
the
purposes
of
Code
chapter
453A
(cigars,
other
tobacco
7
products,
and
alternative
nicotine
and
vapor
products).
The
8
bill
also
amends
Code
section
453A.42(16)
by
defining
“tobacco
9
products”
for
the
purposes
of
subchapter
II
of
Code
chapter
10
453A
the
same
as
defined
for
the
entire
Code
chapter
under
Code
11
section
453A.1.
12
Under
current
law,
a
tax
is
imposed
on
tobacco
products
13
in
the
state
and
upon
any
person
engaged
in
business
as
a
14
distributor
of
tobacco
products
at
a
rate
of
22
percent
and
15
an
additional
28
percent
of
the
wholesale
sales
price
of
16
the
tobacco
products,
except
little
cigars
and
snuff.
By
17
including
heated
tobacco
products
in
the
definition
of
“tobacco
18
products”,
heated
tobacco
products
are
subject
to
this
tax.
19
However,
the
bill
exempts
heated
tobacco
products
from
the
20
taxes
imposed
upon
the
use
or
storage
by
consumers
of
tobacco
21
products
in
the
state,
and
upon
consumers,
at
a
rate
of
22
22
percent
and
an
additional
rate
of
28
percent
of
the
cost
of
23
tobacco
products.
24
The
bill
amends
Code
section
453C.1(4)(a)
to
include
in
the
25
definition
of
“cigarette”
a
heated
tobacco
product
for
the
26
purposes
of
Code
chapter
453C
(tobacco
product
manufacturers
——
27
financial
obligations).
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