This bill clarifies how federal excise taxes apply to hookah tobacco and related waterpipe products. Currently, the tax code is ambiguous about whether pipe tobacco tax rates apply to hookah tobacco, which is smoked through water pipes. The legislation establishes that both pipe tobacco and waterpipe tobacco are taxed at the same rate of $2.8311 per pound, and it defines waterpipe tobacco to include hookah tobacco, shisha, maassel, narghile, and argileh products. The bill affects tobacco manufacturers and importers who produce or bring these products into the United States. The tax changes take effect immediately after the bill is enacted, applying to all tobacco manufactured or imported after that date.
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