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SB 893

Taxes, Tobacco, Tobacco Products - As introduced, requires cigarettes that are defined as heated tobacco products to be taxed at a rate of 0.15 cents per cigarette. - Amends TCA Title 67, Chapter 4.

114th Regular Session (2025-2026)

Tennessee bill taxes heated tobacco cigarettes at 0.15 cents each, creating lower tax rate than traditional cigarettes and potentially shifting consumer purchasing patterns.

Assigned to General Subcommittee of Commerce & Labor Committee
#taxes #tobacco #tobaccoproducts
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Bill Summary · SB 893

Legislative bill overview

SB 893 establishes a specific excise tax on heated tobacco products (a category of cigarettes) at 0.15 cents per cigarette in Tennessee. This creates a separate tax classification for these products under the state's tobacco tax code (TCA Title 67, Chapter 4), which currently may not distinguish between traditional and heated tobacco products.

Why is this important

Heated tobacco products are a growing market segment that heat rather than burn tobacco, positioning themselves as alternatives to conventional cigarettes. This bill directly impacts tax revenue, product pricing, and consumer choice in Tennessee's tobacco market, potentially influencing purchasing patterns and state revenue collection.

Potential points of contention

  • Tax rate competitiveness: At 0.15 cents per cigarette, this rate may be significantly lower than traditional cigarette taxes in Tennessee (typically 6.2 cents per cigarette), creating incentives to switch products and potentially reducing overall tobacco tax revenue despite new tax collection
  • Product classification debate: Whether heated tobacco products should be taxed differently than traditional cigarettes is contested between public health advocates (who may prefer equal/higher rates) and industry representatives (who argue they're fundamentally different products)
  • Regulatory clarity gap: The bill doesn't define "heated tobacco products" with specificity, potentially creating enforcement challenges and loopholes for similar emerging products

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

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