II
113th CONGRESS
1st Session
S. 194
IN THE SENATE OF THE UNITED STATES
January 31, 2013
Mr. Durbin (for himself, Mr. Lautenberg, and Mr. Blumenthal) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide tax rate parity among all tobacco products, and for other purposes.
Short title
This Act may be cited as
the Tobacco Tax Equity Act of
2013
.
Establishing excise tax equity among all tobacco product tax rates
Tax parity for pipe tobacco and roll-Your-Own tobacco
Section 5701(f) of the
Internal Revenue Code of 1986 is amended by striking $2.8311
cents
and inserting $24.78
.
Tax parity for smokeless tobacco
Section 5701(e) of the Internal Revenue Code of 1986 is amended—
in paragraph (1),
by striking $1.51
and inserting $13.42
;
in paragraph (2),
by striking 50.33 cents
and inserting $5.37
;
and
by adding at the end the following:
Smokeless tobacco sold in discrete single-use units
On discrete single-use units, $50.33 per thousand.
.
Section 5702(m) of such Code is amended—
in paragraph (1),
by striking or chewing tobacco
and inserting chewing
tobacco, or discrete single-use unit
;
in paragraphs (2)
and (3), by inserting that is not a discrete single-use unit
before the period in each such paragraph;
by adding at the end the following:
Discrete single-use unit
The term discrete single-use unit means any product containing tobacco that—
is not intended to be smoked; and
is in the form of a lozenge, tablet, pill, pouch, dissolvable strip, or other discrete single-use or single-dose unit.
.
Tax parity for large cigars
Paragraph (2) of section 5701(a) of the Internal
Revenue Code of 1986 is amended by striking but not more than 40.26
cents per cigar
and inserting but not less than 5.033 cents per
cigar and not more than 100.66 cents per cigar
.
Tax parity for roll-Your-Own tobacco and certain processed tobacco
Subsection
(o) of section 5702 of the Internal Revenue Code of 1986 is amended by
inserting , or processed tobacco removed or transferred to a person
other than a person with a permit provided under section 5713
after
wrappers thereof
.
Clarifying tobacco product definition and tax rate
In general
Subsection (c) of section 5702 of the Internal Revenue Code of 1986 is amended to read as follows:
Tobacco products
The term tobacco products means—
cigars, cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own tobacco, and
any other product containing tobacco that is intended or expected to be consumed.
.
Tax rate
Section 5701 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
Other tobacco products
Any product described in section 5702(c)(2) or not otherwise described under this section, including any product that has been determined to be a tobacco product by the Food and Drug Administration through its authorities under the Family Smoking Prevention and Tobacco Control Act, shall be taxed at a level of tax equivalent to the tax rate for cigarettes on an estimated per use basis as determined by the Secretary.
.
Effective dates
In general
Except as provided in paragraph (2), the amendments made by this section shall apply to articles removed (as defined in section 5702(j) of the Internal Revenue Code of 1986) after the last day of the month which includes the date of the enactment of this Act.
Discrete single-use units and processed tobacco
The amendments made by subsections (b)(1)(C), (b)(2), and (d) shall apply to articles removed (as defined in section 5702(j) of the Internal Revenue Code of 1986) after the date that is 6 months after the date of the enactment of this Act.