II 

116TH CONGRESS 

1ST SESSION S. 2463 

To amend the Internal Revenue Code of 1986 to provide for regulation 

and taxation of electronic cigarettes and alternative nicotine products. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 11, 2019 

Mr. WYDEN (for himself, Mrs. FEINSTEIN, Mr. REED, Mr. CARPER, Ms. STABENOW, Mr. CARDIN, Mr. WHITEHOUSE, Mr. UDALL, Mrs. SHAHEEN, 

Mr. MERKLEY, Mr. BENNET, Mr. COONS, Mr. HEINRICH, Mr. KING, Mr. 

MARKEY, Mr. VAN HOLLEN, Ms. HASSAN, Ms. SMITH, and Mrs. MURRAY) introduced the following bill; which was read twice and referred to 

the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for regulation and taxation of electronic cigarettes and 

alternative nicotine products. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘E-Cigarette Tax Parity 

5 Act’’. 


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•S 2463 IS

1 SEC. 2. REGULATION AND TAXATION OF ELECTRONIC CIGA2 RETTES AND ALTERNATIVE NICOTINE PROD3 UCTS. 

4 (a) IMPOSITION, RATE, AND ATTACHMENT OF

5 TAX.—Section 5701 of the Internal Revenue Code of 1986 

6 is amended— 

7 (1) by redesignating subsection (h) as sub8 section (i), and 

9 (2) by inserting after subsection (g) the fol10 lowing new subsection: 

11 ‘‘(h) ALTERNATIVE NICOTINE PRODUCTS.— 

12 ‘‘(1) IN GENERAL.—On alternative nicotine 

13 products, manufactured in or imported into the 

14 United States, there shall be imposed a tax equal to 

15 the applicable dollar amount per gram of nicotine 

16 (and a proportionate tax at the like rate on all frac17 tional parts of a gram) contained in such product. 

18 ‘‘(2) APPLICABLE DOLLAR AMOUNT.—For pur19 poses of this subsection, the applicable dollar 

20 amount shall be equal to— 

21 ‘‘(A) $50.33, or 

22 ‘‘(B) for any specified class of alternative 

23 nicotine products which is identified pursuant 

24 to regulations prescribed by the Secretary, such 

25 amount as may be determined by the Secretary 

26 (in consultation with the Secretary of Health 


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1 and Human Services) to be equivalent to the 

2 rate of tax imposed on cigarettes under sub3 section (b)(1) on an estimated per use basis for 

4 such class of alternative nicotine products.’’. 

5 (b) DEFINITIONS.—Section 5702 of the Internal Rev6 enue Code of 1986 is amended— 

7 (1) in subsection (c), by striking ‘‘and roll-your8 own tobacco’’ and inserting ‘‘roll-your-own tobacco, 

9 and alternative nicotine products’’, 

10 (2) in subsection (d), by striking ‘‘or roll-your11 own tobacco’’ each place it appears and inserting 

12 ‘‘roll-your-own tobacco, or alternative nicotine prod13 ucts’’, and 

14 (3) by adding at the end the following new sub15 section: 

16 ‘‘(q) ALTERNATIVE NICOTINE PRODUCT.— 

17 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

18 the term ‘alternative nicotine product’ means any 

19 product containing nicotine which is— 

20 ‘‘(A) suitable for and likely to be offered 

21 to, or purchased by— 

22 ‘‘(i) a consumer for the inhalation, in23 gestion, absorption, or consumption of nic24 otine, or 


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1 ‘‘(ii) a person for the production of a 

2 product described in clause (i), and 

3 ‘‘(B) sold, transferred, or delivered to any 

4 person not possessing a permit provided for in 

5 section 5713(a) as a manufacturer, importer, or 

6 export warehouse proprietor. 

7 ‘‘(2) EXCEPTIONS.—Pursuant to regulations 

8 prescribed by the Secretary, the term ‘alternative 

9 nicotine product’ shall not include— 

10 ‘‘(A) tobacco, processed tobacco, cigars, 

11 cigarettes, smokeless tobacco, pipe tobacco, or 

12 roll-your-own tobacco, or 

13 ‘‘(B) any product which— 

14 ‘‘(i) has been approved by the Food 

15 and Drug Administration for sale as a to16 bacco cessation product or for other thera17 peutic purposes, and 

18 ‘‘(ii) is marketed and sold solely for a 

19 purpose approved as described in clause 

20 (i).’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall take effect on the date that is 180 days 

23 after the date of the enactment of this Act. 

Æ 


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