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Committee briefed on bill lowering cigarette tax rate and directing OTP revenues to public‑health accounts

House Finance Committee · March 7, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Staff briefed engrossed substitute Senate Bill 6129, which would lower the new per‑cigarette tax to 1.25¢ (effective Jan. 1, 2027), preserve other tobacco product tax structures, direct $10 million to the Andy Hill account and $12 million to foundational public health services annually, and waive penalties for certain retailers for 2026.

Committee staff briefed engrossed substitute Senate Bill 6129 on Saturday, outlining changes to cigarette and nicotine product taxation and targeted revenue allocations.

Rochelle Harris summarized the bill’s main components: it reduces the new cigarette tax rate to 1.25¢ per cigarette effective Jan. 1, 2027 (instead of…

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