# Virginia SB1162: Tobacco products; caps statutory tax rate imposed on selling or distributing of cigars, etc.

Virginia SB1162, Tobacco products; caps statutory tax rate imposed on selling or distributing of cigars, etc., is a 2025 Regular Session Senate bill sponsored by Ryan T. McDougle (Republican); status failed, last action 2025-02-05 (Left in Finance and Appropriations) (as of 2026-10-17).

- Canonical: https://policyrisk.com/state-bill/VA-SB1162-2025
- As of: 2026-10-17
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Virginia SB1162
- State: Virginia
- Session: 2025 Regular Session
- Title: Tobacco products; caps statutory tax rate imposed on selling or distributing of cigars, etc.
- Status: failed
- Chamber: Senate
- Introduced: 2025-01-07
- Last action: 2025-02-05, Left in Finance and Appropriations
- Sponsor: Ryan T. McDougle (Republican)
- Cosponsors: 0
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Tobacco products tax; cigars. Caps the statutory tax rate imposed on the selling or distributing of cigars by a distributor or remote retail seller at 20 percent of the manufacturer's sales price or 30 cents ($0.30) per cigar, whichever is lower. Under current law, the effective rate is 20 percent of the manufacturer's sales price due to language in the appropriation act, which doubles the statutory rate. The bill also directs the Department of Taxation to update its form TT-8, Virginia Tobacco Products Tax Return (OTP), to begin collecting data on the number of premium cigars sold in the Commonwealth as a distinct category from all other cigars. The bill directs the Department to update such form as soon as practicable and provide a report of the data so collected and estimated fiscal impacts of adopting a cap of 30 cents ($0.30) per cigar or another rate on the tobacco products tax imposed on premium cigars to the Chairmen of the House Committee on Finance and the Senate Committee on Finance and Appropriations no later than December 1, 2025.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Ryan T. McDougle (Republican), Senate

## Actions (4)

- 2025-02-05: Left in Finance and Appropriations (Senate)
- 2025-01-18: Impact statement from TAX (SB1162) (Senate)
- 2025-01-07: Referred to Committee on Finance and Appropriations (Senate)
- 2025-01-07: Prefiled and ordered printed; Offered 01-08-2025 25103445D (Senate)

## Bill text

- Introduced, 2025-01-07: [HTML](https://lis.blob.core.windows.net/files/1018407.HTML), [PDF](https://lis.blob.core.windows.net/files/1018406.PDF)

## Related bills

- HR671: Commending JR's Auto Care. (adopted)
- SB941: Robbery; use of air or gas operated weapon, etc., penalty. (failed)
- HB1746: Public safety officer; definition. (failed)
- HB1600: Budget Bill. (failed)
- SB1449: Data centers; site assessment for high energy use facility. (failed)
- HB1609: Essential health benefits benchmark plan; Commission to consider coverage for infertility treatment. (to governor)

## Sources
- [Introduced (HTML)](https://lis.blob.core.windows.net/files/1018407.HTML)
- [Introduced (PDF)](https://lis.blob.core.windows.net/files/1018406.PDF)

## Related
- [HR671: Commending JR's Auto Care.](https://policyrisk.com/state-bill/VA-HR671-2025)
- [SB941: Robbery; use of air or gas operated weapon, etc., penalty.](https://policyrisk.com/state-bill/VA-SB941-2025)
- [HB1746: Public safety officer; definition.](https://policyrisk.com/state-bill/VA-HB1746-2025)
- [HB1600: Budget Bill.](https://policyrisk.com/state-bill/VA-HB1600-2025)
- [SB1449: Data centers; site assessment for high energy use facility.](https://policyrisk.com/state-bill/VA-SB1449-2025)
- [HB1609: Essential health benefits benchmark plan; Commission to consider coverage for i…](https://policyrisk.com/state-bill/VA-HB1609-2025)
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Source: PRIA, https://policyrisk.com/state-bill/VA-SB1162-2025 (as of 2026-10-17).