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House clarifies 'moist snuff' definition, shifts some tobacco products to price-based tax
Summary
First-substitute HB92 drew technical amendments to define 'moist snuff' by moisture content and to tax low-weight 'tobacco candy' by price rather than weight; the bill passed the House 72-0 and will go to the Senate.
Lawmakers amended tax law definitions for smokeless tobacco products and approved the first substitute of House Bill 92 on the Utah House floor Wednesday.
Representative Bradley Dawe, sponsor of the measure, explained that the amendment clarifies the statutory definition of ‘‘moist snuff’’ to exclude products sold in low-weight packages or pouches that function more like flavored tobacco candy. Dawe said the bill draws a ‘‘very clear distinction’’: moist snuff must have moisture content above about 45 percent and be loose tobacco; other products would be taxed by price rather than by weight (transcript floor comments).
Rep. Dahl, who spoke in support, said current law taxes moist snuff by weight, which he argued is reasonable for traditional products but not for the low-weight items now on the market. Dawe said the language was reviewed with the Tax Commission and the Department of Agriculture to ensure enforceability and feasibility of moisture testing.
After a brief discussion and a motion to amend, the House voted to pass first substitute HB92 as amended by a vote of 72-0. The bill will be transmitted to the Senate for consideration.
What happens next: The bill goes to the Senate; the Tax Commission would implement the classification and enforcement provisions if the law is enacted.
