Hookah Tobacco Tax Clarification

Summary#

The bill would set a federal tax on waterpipe tobacco, including hookah tobacco, shisha, maassel, narghile, and argileh. It would tax other pipe tobacco at a separate rate. The changes would apply to tobacco made or imported after the bill becomes law.

What it means for you#

If enacted, the bill would apply to waterpipe tobacco made or imported after enactment. It does not state how the tax might affect prices for consumers.

Expenses#

The bill sets a tax of $0.5662 per pound on waterpipe tobacco and $2.8311 per pound on other pipe tobacco. Proportional taxes would apply to fractions of a pound.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.