The End Tobacco Loopholes Act significantly increases federal excise taxes on all tobacco products to create uniform tax rates across different product types. The bill doubles the tax on cigarettes (from $50.33 to $100.66 per thousand for small cigarettes), doubles taxes on small cigars and roll-your-own tobacco, increases smokeless tobacco and pipe tobacco taxes substantially, and introduces a new tax on extracted or concentrated nicotine used in vaping products. The legislation also establishes a "floor stocks" tax on tobacco products already manufactured and held in inventory when the tax increases take effect, with a $500 credit allowed per person. Most provisions take effect shortly after the bill's enactment, with specific products like large cigars and nicotine-containing vaping products getting longer phase-in periods (through the end of 2025 and 180 days respectively), and all future tax rates will automatically adjust annually for inflation starting in 2026.
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