The Floridian: Conservatives Fight to Keep Nicotine Products Tax-Free in Florida

Sun setting over tobacco fields.

Free market conservatives, including Americans for Tax Reform, are descending on the state capitol, urging lawmakers to keep so-called alternative tobacco (Nicotine) products “tax-free” in Florida.

Under current Florida law, many alternative tobacco products are free from excise taxes. Products like vapor, pouches, and a new heat-not-burn technology, are not taxed like traditional cigarettes. Proposed legislation, SB 1418 / HB 785, would ensure that remains the case in Florida for new heat-not-burn products that are just becoming available on the U.S. market.

Doug Kellogg, State Projects Director with Americans for Tax Reform, made the case, “Failure to pass HB 785 would create a scenario where these life-saving products recognized by the FDA as appropriate for the protection of public health are taxed at the destructive cigarette tax rate.”

“Furthermore, Americans for Tax Reform urges that its final language be crafted with a forward-thinking approach. It is essential to ensure that not only currently available reduced-risk products but also future innovations in tobacco harm reduction are encompassed within its scope. Given the rapid advancements in technology, good public policy should be adaptable to new opportunities in this field, preventing the need for frequent legislative revisions to accommodate emerging products,” Kellogg concluded.

Florida TaxWatch has also argued the legislation is sound tax policy. This “tax differential” incentives smokers toward less harmful ATR products. The James Madison Institute has offered similar support, noting a recent piece in its academic journal written by the Tax Foundation that explains the science and policy framework of “risk-based taxation.”

Published in The Floridian - read more.