Bill
S 1945
Imposes a Massachusetts excise tax of $2.00 per ounce on oral nicotine products, paid by distributors at manufacture/purchase; could raise retail prices for consumers.
Note on source material
- The docket and text provided show a Massachusetts Senate bill introduced by Sen. John J. Cronin titled “An Act to impose an excise tax on oral nicotine products.” (The header in your prompt referencing nonpublic schools appears to be an error and is inconsistent with the bill text; this summary follows the bill language provided.)
Purpose
- To create a new excise tax on “oral nicotine products” sold or held in the Commonwealth of Massachusetts, and to establish rules for calculation, collection and administration of that tax.
Key provisions
- Definition: “Oral Nicotine Product” is defined as any noncombustible nicotine product in solid, gum, or paste form intended for oral consumption or placement in the oral cavity for absorption other than by inhalation. The definition expressly excludes products that are (a) tobacco, smokeless tobacco, electronic nicotine delivery systems, cigarettes, or (b) products regulated as drugs or devices by the U.S. Food and Drug Administration under Chapter V of the Food, Drug, and Cosmetic Act.
- Tax rate: A new excise of $2.00 per ounce on oral nicotine products, with a proportionate tax on fractional ounces. Rounding rule: when carrying a fractional-ounce tax calculation to the third decimal place, if that digit is greater than 4, round up to the next cent.
- Minimum package rule: A can/package weighing less than 1 ounce is taxed at the same amount as a 1‑ounce package.
- Point of taxation: The excise is imposed on distributors at the time oral nicotine products are manufactured, purchased, imported, received, or acquired in the Commonwealth.
- Exemptions: Products exported from the Commonwealth and products that the United States law exempts from state taxation are excluded.
- Administration: Chapters 62C and 64C (Massachusetts general laws governing tax assessment, collection, penalties, abatements and administration) are made applicable to this excise.
Who is affected
- Distributors, manufacturers, importers and retailers of qualifying oral nicotine products in Massachusetts (responsible for collection/ remittance).
- Consumers may face higher retail prices depending on how businesses pass through the tax.
- State tax/ enforcement agencies (additional administration, compliance and enforcement duties).
Procedural status and timeline (as provided)
- Introduced / filed as Senate No. 1945 (docket entry dated 1/16/2025) by John J. Cronin.
- Listed status entries show referrals to several committees and dates that appear inconsistent in the supplied metadata (e.g., "REFERRED TO EDUCATION," “Referred to the committee on Revenue,” “Read twice and referred to the Committee on Energy and Natural Resources,” hearing scheduled 09/29/2025). These items should be verified against the official legislative docket for authoritative status and next steps.
Potential impacts (not estimated in bill)
- Revenue: The bill would generate state excise revenue; no fiscal estimate or projected revenue is provided in the text.
- Public health/market: Could reduce consumption by raising prices; may shift consumer behavior toward untaxed/alternative products or out‑of‑state purchases.
- Compliance/administration: New reporting and collection responsibilities for distributors and additional enforcement resources for tax authorities.
Related/ancillary information
- The text lists related bills and prior-session counterparts (e.g., SD 1333; A 8116; S 4281; A 2279). Verify legislative relationships through the official bill tracking system.
Compiled from official sources — confirm details with the bill’s official record.
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