,,ii  #aai? ,,congress  #a/ ,session    
,s4 #hai  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,m>* #c1 #bjbe,mr4     
,durb9 7= himself1 ,mr4 ,wyd51 ,mrs4    
,murray1 ,mr4 ,re$1 ,mr4 ,m]kley1 ,mr4  
,blum5?al1 ,mr4 ,m>key1 & ,ms4 ,hirono7 
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide tax    
rate p>ity among all tobacco products1 &
 = o!r purposes4  #a4 ,%ort title ,?is  
,act may be cit$ z ! ,end ,tobacco      
,loopholes ,act4  #b4 ,increas+ excise  
taxes on cig>ettes & e/abli%+ excise tax
 equity among all tobacco product tax   
rates  7a7 ,tax p>ity = ,roll-,y\r-,own 
tobacco ,section #egja7;g7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
#bd4gh & ins]t+ #di4ef4  7b7 ,tax p>ity 
= pipe tobacco ,section #egja7;f7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ #b4hcaa c5ts & ins]t+ #di4ef4  
7c7 ,tax p>ity = smokeless tobacco  7#a7
 ,section #egja7;e7 ( ! ,int]nal ,rev5ue

 ,code ( #aihf is am5d$-- 7,a7 9        
p>agraph 7#a71 by /rik+ #a4ea & ins]t+  
#bf4hd2  7,b7 9 p>agraph 7#b71 by /rik+ 
#ej4cc c5ts & ins]t+ #aj4gd2 &  7,c7 by 
add+ at ! end ! foll[+3  7#c7 ,smokeless
 tobacco sold 9 discrete s+le-use units 
,on discrete s+le-use units1 #ajj4ff p] 
?\s&4  4  7#b7 ,section #egjb7m7 ( su*  
,code is am5d$-- 7,a7 9 p>agraph 7#a71  
by /rik+ or *ew+ tobacco & ins]t+ 1 *ew+
 tobacco1 or discrete s+le-use unit2    
7,b7 9 p>agraphs 7#b7 & 7#c71 by ins]t+ 
t is n a discrete s+le-use unit be=e !  
p]iod 9 ea* su* p>agraph2 &  7,c7 by    
add+ at ! end ! foll[+3  7#d7 ,discrete 
s+le-use unit ,! t]m discrete s+le-use  
unit means any product conta9+1 made f1 
or d]iv$ f tobacco or nicot9e t-- 7,a7  
is n int5d$ to be smok$2 &  7,b7 is 9 ! 
=m ( a loz5ge1 tablet1 pill1 p\*1       
dissolvable /rip1 or o!r discrete       
s+le-use or s+le-dose unit4  4  7d7 ,tax
 p>ity = small cig>s ,p>agraph 7#a7 (   
section #egja7;a7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by /rik+ #ej4cc &

 ins]t+ #ajj4ff4  7e7 ,tax p>ity = l>ge 
cig>s  7#a7 ,9 g5]al ,p>agraph 7#b7 (   
section #egja7;a7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by /rik+ #eb4ge  
p]c5t & all t foll[s ?r\gh ! p]iod &    
ins]t+ ! foll[+3 #di4ef p] p\nd & a     
proportionate tax at ! l rate on all    
fractional p>ts ( a p\nd b n less ?an   
#aj4jff c5ts p] cig>44  7#b7 ,guidance  
,! ,secret>y ( ! ,treasury1 or !        
,secret>y's delegate1 may issue guidance
 reg>d+ ! appropriate me?od = det]m9+ ! 
weight ( l>ge cig>s = purposes (        
calculat+ ! applicable tax "u section   
#egja7;a77#b7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf4  7#c7 ,con=m+ am5dm5t ,section
 #egjb ( su* ,code is am5d$ by /rik+    
subsection 7l74  7f7 ,tax p>ity =       
,roll-,y\r-,own tobacco & c]ta9 process$
 tobacco ,subsection 7o7 ( section #egjb
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by ins]t+ 1 & includes process$   
tobacco t is remov$ = deliv]y or deliv]$
 to a p]son o!r ?an a p]son ) a p]mit   
provid$ "u section #egac1 b does n      

include removals ( process$ tobacco =   
exportation aft] wrapp]s !re(4  7g7     
,imposition ( tax on nicot9e = use 9    
vap+1 etc  7#a7 ,9 g5]al ,section #egja 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by r$esignat+ subsection 7h7 z    
subsection 7i7 & by ins]t+ aft]         
subsection 7g7 ! foll[+ new subsection3 
7h7 ,nicot9e ,on taxable nicot9e1       
manufactur$ 9 or import$ into ! ,unit$  
,/ates1 !re %all be impos$ a tax equal  
to ! doll> am\nt specifi$ 9 section     
#egja7;b77#a7 p] #a1haj milligrams (    
nicot9e 7& a proportionate tax at ! l   
rate on any fractional "p !re(74  4     
7#b7 ,taxable nicot9e ,section #egjb (  
su* ,code is am5d$ by add+ at ! end !   
foll[+ new subsection3  7q7 ,taxable    
nicot9e  7#a7 ,9 g5]al ,except z o!rwise
 provid$ 9 ?is subsection1 ! t]m taxable
 nicot9e means any nicot9e :i* has be5  
extract$1 conc5trat$1 or syn!siz$4  7#b7
 ,exception = products approv$ by ,food 
& ,drug ,adm9i/ration ,su* t]m %all n   
include any nicot9e if ! manufactur] or 

import] !re( demon/rates to !           
satisfaction ( ! ,secret>y ( ,heal? &   
,human ,s]vices t su* nicot9e w be us$  
9-- 7,a7 a drug-- 7i7 t is approv$ "u   
section #eje ( ! ,f$]al ,food1 ,drug1 & 
,cosmetic ,act or lic5s$ "u section #cea
 ( ! ,public ,heal? ,s]vice ,act2 or    
7ii7 = :i* an inve/igational use        
exemption has be5 au?oriz$ "u section   
#eje7;i7 ( ! ,f$]al ,food1 ,drug1 &     
,cosmetic ,act or "u section #cea7;a7 ( 
! ,public ,heal? ,s]vice ,act2 or  7,b7 
a comb9ation product 7z describ$ 9      
section #ejc7;g7 ( ! ,f$]al ,food1      
,drug1 & ,cosmetic ,act71 ! con/itu5t   
p>ts ( :i* 7 approv$ or cle>$ "u section
 #eje1 #eaj7k71 or #eae ( su* ,act4     
7#c7 ,coord9ation ) taxation ( o!r      
tobacco products ,tobacco products meet+
 ! def9ition ( cig>s1 cig>ettes1        
smokeless tobacco1 pipe tobacco1 &      
roll-y\r-own tobacco 9 ?is section %all 
be classifi$ & tax$ z su* despite any   
conc5tration ( ! nicot9e inh]5t 9 ^?    
products or any addition ( nicot9e to ^?

 products dur+ ! manufactur+ process4   
7#d7 ,regulations ,! ,secret>y %all     
prescribe su* regulations or o!r        
guidance z is necess>y or appropriate to
 c>ry out ! purposes ( ?is subsection1  
includ+ regulations or o!r guidance =   
coord9at+ ! taxation ( tobacco products 
& taxable nicot9e to protect rev5ue &   
prev5t d\ble taxation4  4  7#c7 ,taxable
 nicot9e treat$ z a tobacco product     
,section #egjb7;c7 ( su* ,code is am5d$ 
by /rik+ & roll-y\r-own tobacco & ins]t+
 roll-y\r-own tobacco1 & taxable        
nicot9e4  7#d7 ,manufactur] ( taxable   
nicot9e ,section #egjb ( su* ,code1 z   
am5d$ by p>agraph 7#b71 is am5d$ by add+
 at ! end ! foll[+ new subsection3  7r7 
,manufactur] ( taxable nicot9e  7#a7 ,9 
g5]al ,any p]son :o extracts1           
conc5trates1 or syn!sizes nicot9e %all  
be treat$ z a manufactur] ( taxable     
nicot9e 7& z manufactur+ su* taxable    
nicot9e74  7#b7 ,application ( rules    
relat$ to manufactur]s ( tobacco        
products ,any ref]5ce to a manufactur] (

 tobacco products1 or to manufactur+    
tobacco products1 %all be treat$ z      
includ+ a ref]5ce to a manufactur] (    
taxable nicot9e1 or to manufactur+      
taxable nicot9e1 respectively4  4  7h7  
,increas+ tax on cig>ettes  7#a7 ,small 
cig>ettes ,section #egja7;b77#a7 ( su*  
,code is am5d$ by /rik+ #ej4cc & ins]t+ 
#ajj4ff4  7#b7 ,l>ge cig>ettes ,section 
#egja7;b77#b7 ( su* ,code is am5d$ by   
/rik+ #aje4fi & ins]t+ #baa4ch4  7i7    
,tax rates adju/$ = inflation ,section  
#egja ( su* ,code1 z am5d$ by subsection
 7g71 is am5d$ by add+ at ! end ! foll[+
 new subsection3  7j7 ,inflation        
adju/m5t  7#a7 ,9 g5]al ,9 ! case ( any 
cal5d> ye> beg9n+ aft] #bjbe1 ! doll>   
am\nts provid$ "u ?is *apt] %all ea* be 
increas$ by an am\nt equal to-- 7,a7 su*
 doll> am\nt1 multipli$ by  7,b7 !      
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye>1 det]m9$ by   
sub/itut+ #8cal5d> ye> #bjbd' = #8cal5d>
 ye> #bjaf' 9 subp>agraph 7,a77ii7 !re(4
  7#b7 ,r\nd+ ,if any am\nt z adju/$ "u 

p>agraph 7#a7 is n a multiple ( #j4ja1  
su* am\nt %all be r\nd$ to ! next highe/
 multiple ( #j4ja4  4  7j7 ,floor ,/ocks
 ,taxes  7#a7 ,imposition ( tax ,on     
tobacco products manufactur$ 9 or       
import$ into ! ,unit$ ,/ates :i* are    
remov$ be=e any tax increase date & held
 on su* date = sale by any p]son1 !re is
 h]eby impos$ a tax 9 an am\nt equal to 
! excess (-- 7,a7 ! tax :i* w\ld be     
impos$ "u section #egja ( ! ,int]nal    
,rev5ue ,code ( #aihf on ! article if ! 
article _h be5 remov$ on su* date1 ov]  
7,b7 ! prior tax 7if any7 impos$ "u     
section #egja ( su* ,code on su*        
article4  7#b7 ,cr$it aga9/ tax ,ea*    
p]son %all be all[$ z a cr$it aga9/ !   
taxes impos$ by p>agraph 7#a7 an am\nt  
equal to #ejj4 ,su* cr$it %all n exce$ !
 am\nt ( taxes impos$ by p>agraph 7#a7  
on su* date = :i* su* p]son is liable4  
7#c7 ,liability = tax & me?od ( paym5t  
7,a7 ,liability = tax ,a p]son hold+    
tobacco products on any tax increase    
date to :i* any tax impos$ by p>agraph  

7#a7 applies %all be liable = su* tax4  
7,b7 ,me?od ( paym5t ,! tax impos$ by   
p>agraph 7#a7 %all be paid 9 su* mann] z
 ! ,secret>y %all prescribe by          
regulations4  7,c7 ,"t = paym5t ,! tax  
impos$ by p>agraph 7#a7 %all be paid on 
or be=e ! date t is #abj days aft] !    
effective date ( ! tax rate increase4   
7#d7 ,articles 9 =eign trade zones      
,not)/&+ ! ,act ( ,june #ah1 #aicd      
7commonly kn[n z ! ,=eign ,trade ,zone  
,act1 #dh ,/at4 #iih1 #ai ,u4,s4,c4     
#ha;a et seq471 or any o!r provision (  
law1 any article :i* is locat$ 9 a =eign
 trade zone on any tax increase date    
%all be subject to ! tax impos$ by      
p>agraph 7#a7 if-- 7,a7 int]nal rev5ue  
taxes h be5 det]m9$1 or cu/oms duties   
liquidat$1 ) respect to su* article be=e
 su* date pursuant to a reque/ made "u !
 fir/ proviso ( section #c7;a7 ( su*    
,act1 or  7,b7 su* article is held on   
su* date "u ! sup]vision ( an (fic] ( ! 
,unit$ ,/ates ,cu/oms & ,bord]          
,protection ( ! ,dep>tm5t ( ,homel&     

,security pursuant to ! second proviso (
 su* section #c7;a74  7#e7 ,def9itions  
,= purposes ( ?is subsection-- 7,a7 ,9  
g5]al ,any t]m us$ 9 ?is subsection :i* 
is also us$ 9 section #egjb ( su* ,code 
%all h ! same mean+ z su* t]m has 9 su* 
section4  7,b7 ,tax increase date ,! t]m
 tax increase date means ! effective    
date ( any increase 9 any tobacco       
product excise tax rate pursuant to !   
am5dm5ts made by ?is section 7o!r ?an   
subsection 7j7 !re(74  7,c7 ,secret>y ,!
 t]m ,secret>y means ! ,secret>y ( !    
,treasury or ! ,secret>y's delegate4    
7#f7 ,controll$ gr\ps ,rules simil> to !
 rules ( section #ejfa7;e77#c7 ( su*    
,code %all apply = purposes ( ?is       
subsection4  7#g7 ,o!r laws applicable  
,all provisions ( law1 includ+ p5alties1
 applicable ) respect to ! taxes impos$ 
by section #egja ( su* ,code %all1 ins(>
 z applicable & n inconsi/5t ) !        
provisions ( ?is subsection1 apply to ! 
floor /ocks taxes impos$ by p>agraph    
7#a71 to ! same ext5t z if su* taxes 7  

impos$ by su* section #egja4 ,!         
,secret>y may treat any p]son :o bore ! 
ultimate burd5 ( ! tax impos$ by        
p>agraph 7#a7 z ! p]son to :om a cr$it  
or refund "u su* provisions may be all[$
 or made4  7k7 ,effective dates  7#a7 ,9
 g5]al ,except z provid$ 9 p>agraphs    
7#b7 ?r\gh 7#d71 ! am5dm5ts made by ?is 
section %all apply to articles remov$ 7z
 def9$ 9 section #egjb7;j7 ( ! ,int]nal 
,rev5ue ,code ( #aihf7 aft] ! la/ day ( 
! mon? :i* includes ! date ( ! enactm5t 
( ?is ,act4  7#b7 ,discrete s+le-use    
units & process$ tobacco ,! am5dm5ts    
made by subsections 7c77#a77;,c71       
7c77#b71 & 7f7 %all apply to articles   
remov$ 7z def9$ 9 section #egjb7;j7 ( ! 
,int]nal ,rev5ue ,code ( #aihf7 aft] !  
date t is #f mon?s aft] ! date ( !      
enactm5t ( ?is ,act4  7#c7 ,l>ge cig>s  
,! am5dm5ts made by subsection 7e7 %all 
apply to articles remov$ aft] ,decemb]  
#ca1 #bjbe4  7#d7 ,taxable nicot9e ,!   
am5dm5ts made by subsection 7g7 %all    
apply to articles remov$ 9 cal5d> qu>t]s

 beg9n+ aft] ! date :i* is #ahj days    
aft] ! date ( ! enactm5t ( ?is ,act4    
7l7 ,transition rule = p]mit & bond     
requirem5ts ,a p]son :i* is lawfully    
engag$ 9 bus9ess z a manufactur] or     
import] ( taxable nicot9e 7)9 ! mean+ ( 
sub*apt] ,a ( *apt] #eb ( ! ,int]nal    
,rev5ue ,code ( #aihf1 z am5d$ by ?is   
section7 on ! date ( ! enactm5t ( ?is   
,act1 fir/ becomes subject to !         
requirem5ts ( sub*apt] ,b ( *apt] #eb ( 
su* ,code by reason ( ! am5dm5ts made by
 ?is section1 & submits an application  
"u su* sub*apt] ,b to engage 9 su*      
bus9ess n lat] ?an #ij days aft] ! date 
( ! enactm5t ( ?is ,act1 %all n be d5i$ 
! "r to c>ry on su* bus9ess by reason ( 
su* requirem5ts be=e f9al action on su* 
application4