UtahH.B. 3372026 General SessionHouseWALLET

Nicotine Product Tax Amendments

Sponsored By: Clancy, Tyler

Signed by Governor

Health and Human ServicesRevenue and TaxationCigarette and Tobacco TaxesTobacco and Other Nicotine Products

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 3 costs, 1 mixed.

Higher cigarette tax starts July 2026

Beginning July 1, 2026, Utah charges $0.11 per cigarette ($2.20 per 20-pack). The tax applies when cigarettes are sold, used, stored, or distributed in the state. If the federal cigarette tax drops later, Utah raises its rate by the same amount per cigarette.

Higher taxes on vapes and pouches

Starting July 1, 2026, Utah taxes many nicotine products at high rates. E‑cig liquids, prefilled vapes, and similar devices pay 71% of the manufacturer’s price. Other alternative nicotine products pay 73% of the manufacturer’s price. Nicotine pouch packs pay $1 plus $0.05 for each pouch over 20. A nicotine pouch is a mouth pouch with a solid, gel, or paste that delivers nicotine without inhaling.

New stamps and resale rules for sellers

Starting July 1, 2026, you must pay nicotine product taxes when items first arrive in Utah. You cannot resell before paying. If a taxed nicotine item is bundled, tax applies to the whole package price. Cigarette sellers with old‑rate stamped stock owe a one‑time difference tax, due by July 31, 2026. Old cigarette tax stamps cannot be used after July 1, 2026; the penalty is $25 per offense. You may return old stamps for credit or refund. The commission cannot waive interest or penalties tied to the transitional inventory tax.

Nicotine tax money funds prevention and schools

Starting July 1, 2026, the state puts nicotine tax receipts into a restricted account. Each year, and in this order, money pays: $2,000,000 to local health departments for enforcement; $1,180,000 to Public Safety; $1,000,000 to Health and Human Services for enforcement; $3,000,000 for community prevention; $1,000,000 for statewide quitting help and education; $2,000,000 for alcohol/tobacco/other drug media; and $5,084,200 to the State Board of Education for school prevention. If funds are short, payments happen in order and are prorated. Spending is limited to enforcement, prevention, and cessation. Any yearly revenue above $15.9 million moves to the General Fund. After the listed payments, remaining funds can only support tax collection staff or prevention/cessation. These rules run July 1, 2026 through July 1, 2030, and need yearly legislative appropriation.

Cigarette tax funds health and research

Beginning July 1, 2026, the first $7.95 million of cigarette tax money goes to a special account. Each year, the state plans to pay: $250,000 for a youth anti‑tobacco media campaign; $2.9 million for prevention programs; $2 million to the Huntsman Cancer Institute; and $2.8 million to the University of Utah School of Medicine. The Legislature must approve these payments each year.

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Sponsors & Cosponsors

Sponsor

  • Clancy, Tyler

    Affiliation unavailable

Cosponsors

  • Cheryl K. Acton

    Republican • House

  • Emily Buss

    Forward Party • Senate

  • Kay J. Christofferson

    Republican • House

  • Paul A. Cutler

    Republican • House

  • Ariel Defay

    Republican • House

  • Steve Eliason

    Republican • House

  • Jon Hawkins

    Republican • House

  • Tracy Miller

    Republican • House

  • Clinton Okerlund

    Republican • House

  • Karen M. Peterson

    Republican • House

  • Candice B. Pierucci

    Republican • House

  • Jerry W Stevenson

    Republican • Senate

  • Raymond P. Ward

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 182 • No: 43

House vote 3/6/2026

House/ concurs with Senate amendment

Yes: 51 • No: 19

Senate vote 3/5/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 27 • No: 0

Senate vote 3/5/2026

Senate/ substituted

Yes: 0 • No: 0

Senate vote 3/5/2026

Senate/ motion to reconsider

Yes: 0 • No: 0

Senate vote 3/5/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 26 • No: 0

Senate vote 3/5/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote 3/5/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote 3/5/2026

Senate/ substituted

Yes: 0 • No: 0

Senate vote 3/5/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote 3/5/2026

Senate/ substituted

Yes: 0 • No: 0

Senate vote 3/5/2026

Senate/ uncircled

Yes: 0 • No: 0

House vote 3/2/2026

Senate Comm - Substitute Recommendation

Yes: 7 • No: 0

House vote 3/2/2026

Senate Comm - Favorable Recommendation

Yes: 5 • No: 2

House vote 2/23/2026

House/ substituted

Yes: 0 • No: 0

House vote 2/23/2026

House/ uncircled

Yes: 0 • No: 0

House vote 2/23/2026

House/ circled

Yes: 0 • No: 0

House vote 2/23/2026

House/ passed 3rd reading

Yes: 47 • No: 20

House vote 2/13/2026

House Comm - Favorable Recommendation

Yes: 9 • No: 2

House vote 2/13/2026

House Comm - Substitute Recommendation

Yes: 10 • No: 0

Actions Timeline

  1. Governor Signed

    3/25/2026
  2. House/ to Governor

    3/16/2026House
  3. House/ received enrolled bill from Printing

    3/16/2026House
  4. House/ enrolled bill to Printing

    3/12/2026House
  5. Enrolled Bill Returned to House or Senate

    3/12/2026
  6. Draft of Enrolled Bill Prepared

    3/6/2026
  7. Bill Received from House for Enrolling

    3/6/2026
  8. House/ signed by Speaker/ sent for enrolling

    3/6/2026House
  9. House/ received from Senate

    3/6/2026House
  10. Senate/ to House

    3/6/2026Senate
  11. Senate/ signed by President/ returned to House

    3/6/2026Senate
  12. Senate/ received from House

    3/6/2026Senate
  13. House/ to Senate

    3/6/2026House
  14. House/ concurs with Senate amendment

    3/6/2026House
  15. House/ placed on Concurrence Calendar

    3/5/2026House
  16. House/ received from Senate

    3/5/2026House
  17. Senate/ to House with amendments

    3/5/2026Senate
  18. Senate/ passed 2nd & 3rd readings/ suspension

    3/5/2026Senate
  19. Senate/ substituted

    3/5/2026Senate
  20. Senate/ 2nd reading

    3/5/2026Senate
  21. Senate/ motion to reconsider

    3/5/2026Senate
  22. Senate/ to House with amendments

    3/5/2026Senate
  23. Senate/ passed 2nd & 3rd readings/ suspension

    3/5/2026Senate
  24. Senate/ substituted

    3/5/2026Senate
  25. Senate/ uncircled

    3/5/2026Senate

Bill Text

  • Enrolled

    3/12/2026

  • Substitute #5

    3/5/2026

  • Substitute #6

    3/5/2026

  • Substitute #7

    3/5/2026

  • Substitute #4

    3/4/2026

  • Substitute #3

    3/2/2026

  • Substitute #2

    2/23/2026

  • Substitute #1

    2/12/2026

  • Introduced

    1/22/2026

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