Tax rates on tobacco and nicotine products; "cigarette" defined

(A) There shall be levied, assessed, collected, and paid in respect to the articles containing tobacco or nicotine enumerated in this section the following amounts: (1) upon all cigarettes for smoking made of tobacco or any substitute for tobacco, three and one-half mills on each cigarette; (2) upon all cigarettes for heating made of tobacco or any substitute for tobacco, twenty-one and three hundred seventy-five thousandths mills on each cigarette. The proceeds of this item must be deposited in the South Carolina Medicaid Reserve Fund created pursuant to Section 11-11-230(B); (3) upon all tobacco products, as defined in Section 12-21-800, five percent of the manufacturer's price; (4) upon all vapor products and electronic cigarettes, a tax of five cents per milliliter of consumable nicotine liquid solution or other material containing nicotine that is depleted as a vapor product is used. The proceeds of this item must be deposited in the South Carolina Medicaid Reserve Fund created pursuant to Section 11-11-230(B). Manufacturer's price as used in this section is the established price at which a manufacturer sells to a wholesaler. (B) As used in this section, "cigarette" means: (1) any roll for smoking or heating under ordinary conditions of use containing tobacco or any substitute for tobacco wrapped in paper or in any substance other than a tobacco leaf; or (2) any roll for smoking or heating under ordinary conditions of use containing tobacco or any substitute for tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1) of this subsection.