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119-hr-1798119th CongressWALLET

End Tobacco Loopholes Act

Sponsored By: Representative Krishnamoorthi, Raja [D-IL-8]

Introduced

Summary

Raises and harmonizes federal taxes across tobacco products and creates a new federal tax on nicotine used in vaping. This bill adds a new category for discrete single-use nicotine or smokeless units, indexes rates to inflation, and sets transition rules to phase in the changes.

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  • Consumers and smokers: Tax rates for cigarettes, cigars, roll-your-own, pipe, and smokeless tobacco are substantially increased. For example, large cigarettes are raised to $211.38 and small cigarettes to $100.66, and many other product rates are roughly doubled.
  • Manufacturers and importers: Nicotine that is extracted, concentrated, or synthesized becomes a taxable product and its producers are treated as manufacturers under tobacco rules. The bill also requires coordinated rules to avoid double taxation and allows existing nicotine makers temporary permit/bond relief if they apply within 90 days.
  • Retailers and wholesalers: A floor-stocks tax hits inventories made or imported before a tax increase date, with a $500 credit per taxpayer and tax payment due within 120 days. The law phases in effective dates for categories like large cigars and taxable nicotine to ease the transition.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 4 costs, 0 mixed.

Higher smokeless tobacco and pouch taxes

This bill would raise excise taxes on smokeless tobacco. One category would be $26.84 per unit. Another would be $10.74 per unit. Discrete single-use units, like pouches, lozenges, tablets, pills, or dissolvable strips, would be $100.66 per 1,000. These items must not be smoked and are single-dose. Makers and importers would pay the tax, and store prices could rise.

Higher taxes on cigars and loose tobacco

This bill would increase taxes on cigars and loose tobacco. Pipe tobacco and roll-your-own would be $49.56 per unit. Small cigars would be $100.66 per unit. Large cigars would be $49.56 per pound, at least 10.066 cents per cigar. The Treasury could issue guidance on how to weigh cigars. These changes could raise retail prices.

New federal tax on vaping nicotine

If enacted, the bill would tax nicotine that is extracted, concentrated, or made synthetically. Manufacturers and importers would pay a set amount per 1,810 mg of nicotine, with partial amounts taxed proportionally. This could raise prices for vaping liquids and similar products. Nicotine used in FDA-approved drugs or authorized trials could be excluded if the maker shows the Health and Human Services Secretary.

More processed tobacco deliveries taxed

This bill would tax processed tobacco sent to someone without a federal permit. Exports would stay untaxed. This would expand which deliveries count as taxable for manufacturers and processors.

Sponsors & CoSponsors

Sponsor

Krishnamoorthi, Raja [D-IL-8]

IL • D

Cosponsors

  • Rep. Wasserman Schultz, Debbie [D-FL-25]

    FL • D

    Sponsored 3/31/2025

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 3/31/2025

  • Rep. Cohen, Steve [D-TN-9]

    TN • D

    Sponsored 6/24/2025

Roll Call Votes

No roll call votes available for this bill.

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