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119-s-819119th CongressWALLET

End Tobacco Loopholes Act

Sponsored By: Senator Durbin, Richard J. [D-IL]

Introduced

Summary

Establish tax rate parity across tobacco products. This bill would align federal excise rates for cigarettes, cigars, pipe tobacco, roll‑your‑own, smokeless tobacco, and create a new federal tax category for nicotine used in vaping and similar products. It would also add inflation adjustments, a floor‑stocks tax on inventory held when rates rise, and phased implementation dates for some product types.

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  • Families and consumers: Households that buy tobacco or nicotine products would face higher federal excise taxes on many items. For example, small cigarette taxes rise from $50.33 to $100.66 and large cigarette rates rise from $105.69 to $211.38.
  • Smokeless and vaping users: Smokeless tobacco rates increase and the bill creates a new discrete single‑use unit tax at $100.66 per thousand units. It would tax “taxable nicotine” at $100.66 per 1,810 milligrams of nicotine.
  • Manufacturers, importers, and retailers: The bill defines manufacturers of taxable nicotine and lets existing nicotine makers continue if they apply within 90 days. It creates a floor stocks tax due within 120 days after the rate increase and allows a $500 per‑person credit against that tax.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 2 costs, 0 mixed.

Higher cigarette, cigar, and smokeless taxes

If enacted, the bill would raise federal excise taxes on cigarettes, cigars, and smokeless tobacco. Small cigarettes would rise to $100.66 and large cigarettes to $211.38. Smokeless tobacco rates would rise to $26.84 and $10.74. Discrete single-use smokeless units would be taxed $100.66 per 1,000 units starting six months after enactment. Large cigars would be taxed $49.56 per pound after December 31, 2025, with a minimum 10.066¢ per cigar. If enacted, these changes would likely raise retail prices for buyers of these products.

New nicotine tax and business rules

If enacted, the bill would create a new tax on extracted or synthetic nicotine. The tax would be $100.66 per 1,810 milligrams of nicotine, prorated for fractions. People who extract, concentrate, or synthesize nicotine would be treated as manufacturers and face manufacturer rules. There is an exception if the nicotine is shown to be for an FDA-approved drug. The bill would impose a one-time floor stocks tax on inventories held on a tax increase date. Taxpayers could claim up to $500 credit, and payment is due within 120 days. Processed tobacco sent to permit-exempt buyers would be covered starting six months after enactment. Many changes use staggered start dates; taxable nicotine starts in the calendar quarter after 180 days. Dollar excise amounts would be indexed for inflation for calendar years after 2025.

Sponsors & CoSponsors

Sponsor

Durbin, Richard J. [D-IL]

IL • D

Cosponsors

  • Sen. Wyden, Ron [D-OR]

    OR • D

    Sponsored 3/3/2025

  • Sen. Murray, Patty [D-WA]

    WA • D

    Sponsored 3/3/2025

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 3/3/2025

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 3/3/2025

  • Sen. Reed, Jack [D-RI]

    RI • D

    Sponsored 3/3/2025

  • Sen. Hirono, Mazie K. [D-HI]

    HI • D

    Sponsored 3/3/2025

  • Sen. Markey, Edward J. [D-MA]

    MA • D

    Sponsored 3/3/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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