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Bill

Bill

SB 98

Revise tax rate on cigarettes that are not burned

2025 Regular Session Introduced by Becky Beard

Montana bill adjusting tax rates on smokeless tobacco products to revise state revenue and potentially influence tobacco consumption patterns.

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WeVote Research Nonpartisan
Bill Summary · SB 98

Legislative bill overview

SB 98 proposes to revise Montana's tax rate specifically on cigarettes that are not burned—primarily referring to smokeless tobacco products like chewing tobacco, snuff, and similar items. The bill would adjust the existing tax structure for these non-combustible tobacco products.

Why is this important

Tobacco tax policy directly affects state revenue, public health outcomes, and consumer behavior. Changes to smokeless tobacco taxes can influence usage patterns, particularly among younger users, while also impacting the revenue stream states rely on for healthcare and education funding. This type of legislation reflects ongoing national debate about how to treat different tobacco product categories.

Potential points of contention

  • Revenue impact uncertainty: The fiscal note suggests potential budgetary effects, but the direction and magnitude of revenue changes from adjusting smokeless tobacco taxes may be disputed
  • Public health equity: Advocates may argue smokeless tobacco deserves equal tax treatment to combustible cigarettes for health reasons, while others claim differential taxation unfairly targets specific product users
  • Substitution effects: Unclear whether tax changes would reduce tobacco use overall or simply shift consumers between combustible and non-combustible products

Compiled from official sources — confirm details with the bill’s official record.

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