AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO TOBACCO PRODUCT TAXATION AND LICENSING.

House Substitute No. 1 for House Bill No. 215 differs from House Bill No. 215 as follows: this substitute provides a definition of a premium cigar and modifies the tax rate changes in House Bill 215 by setting the tax rate for other tobacco products at 40% of the wholesale price, maintaining the tax for premium cigars at 30% of the wholesale price, and setting the tax rate for vapor products at 10 cents per fluid milliliter. A definition of “nicotine pouch” is added. As with House Bill 215, House Substitute No.1 increases the cigarette tax rate to $3.60 per pack, increases some license fees, and changes the definition of “tobacco products” to include more items. This substitute bill sets the effective date of the tax rate increases as September 1, 2026, and the effective date of the increased license fees as January 1, 2027. This Act requires a greater than majority vote for passage because § 10 of Article VIII of the Delaware Constitution requires the affirmative vote of three-fifths of the members elected to each house of the General Assembly to increase the effective rate of a tax or fee levied by the State.