HR 65

112th CONGRESS
1st Session

H. R. 65

To amend the Internal Revenue Code of 1986 to provide for the taxation of smokeless tobacco products sold as discrete single-use units.

IN THE HOUSE OF REPRESENTATIVES

January 5, 2011

Mr. DOGGETT introduced the following bill; which was referred to the Committee on Ways and Means

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A BILL

To amend the Internal Revenue Code of 1986 to provide for the taxation of smokeless tobacco products sold as discrete single-use units.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Candy Tobacco Tax Parity Act of 2011'.

SEC. 2. TAXATION OF DISCRETE SINGLE-USE UNIT SMOKELESS TOBACCO.

(a) In General- Subsection (e) of section 5701 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

`(3) DISCRETE SINGLE-USE UNIT PRODUCTS- On discrete single-use units, an amount per thousand units equal to the amount per thousand cigarettes in effect under subsection (b)(1) (relating to small cigarettes).'.

(b) Modification of Smokeless Tobacco Definition To Include Discrete Single-Use Units-

(1) IN GENERAL- Paragraph (1) of section 5702(m) of such Code is amended by striking `or chewing tobacco' and inserting `, chewing tobacco, or discrete single-use unit'.

(2) DISCRETE SINGLE-USE UNITS DEFINED- Subsection (m) of section 5702 of such Code is amended by adding at the end the following new paragraph:

`(4) DISCRETE SINGLE-USE UNIT- The term `discrete single-use unit' means any product containing tobacco that--

`(A) is intended or expected to be consumed without being combusted, and

`(B) is in the form of a lozenge, tablet, pill, pouch, dissolvable strip, or other discrete single-use or single-dose unit.'.

(c) Conforming Amendments- Subsection (e) of section 5701 of such Code is amended--

(1) by striking `On snuff' in paragraph (1) and inserting `On snuff not described in paragraph (3)', and

(2) by striking `On chewing tobacco' in paragraph (2) and inserting `On chewing tobacco not described in paragraph (3)'.

(d) Effective Date- The amendments made by this section shall apply to articles removed (as defined in section 5702(j) of the Internal Revenue Code of 1986) after the date that is 180 days after the date of the enactment of this Act.

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