A bill for an act relating to the regulation and taxation of tobacco products and heated tobacco products.

HF 1035 updates the regulation and taxation of tobacco products, specifically targeting heated tobacco products. The bill defines "heated tobacco product" and includes it within the existing definition of "cigarette" for certain regulatory purposes, such as sales and manufacturer obligations. It establishes a new tax rate of 3.4 cents per consumable unit of a heated tobacco product, which is half the tax rate applied to traditional cigarettes. Additionally, the bill exempts heated tobacco products from the 22% wholesale tax currently imposed on other tobacco products. Finally, it modifies the definition of "vapor product" to specifically include liquid nicotine.