UtahUtah sets taxes on cigarettes and other nicotine products
Starting July 1, 2026, Utah law sets taxes on several nicotine products and sends certain tax revenue above $15.9 million to the General Fund.
What it does
Utah law sets taxes on cigarettes and several other nicotine products. Pouch products have a per-product tax, while other alternative nicotine products are taxed based on the maker’s sale price.
Sellers and distributors must pay a transition tax on certain cigarettes still bearing an old tax stamp, if that tax has not already been paid.
For a fiscal year when covered nicotine product tax revenue exceeds $15.9 million, the amount above that threshold goes to Utah’s General Fund.
Argument forHigher taxes could bring in more state revenue, with some tax money above a set amount going to Utah’s General Fund.
Argument againstHigher taxes could raise prices for people who buy cigarettes and other nicotine products.
More detail
Utah law sets taxes on cigarettes and other nicotine products. The provisions cover cigarettes, electronic cigarette substances and prefilled electronic cigarettes, nontherapeutic nicotine devices and their substances, and alternative nicotine products. For pouch products, the stated tax is $1 plus 5 cents for each pouch over 20; other alternative nicotine products are taxed based on the manufacturer's sales price. The bill text’s overlapping amendment wording does not make all rate details clear. These provisions take effect July 1, 2026.
Certain cigarettes with old tax stamps are subject to a transition tax. The rule covers cigarettes sold, used, stored, or distributed in Utah that meet the stamp and unpaid-tax conditions. The tax applies only when the cigarette bears a stamp showing tax was paid at the rate in effect through June 30, 2026, and the transition tax remains unpaid. Listed sellers and distributors must pay the tax; failure to comply can bring penalties and interest. The tax applies beginning July 1, 2026, and the return is due by July 31, 2026.
The Division of Finance transfers tax revenue above $15.9 million to the General Fund. The revenue comes from taxes on electronic cigarette substances, prefilled electronic cigarettes, alternative nicotine products, and nontherapeutic nicotine devices and substances. The transfer covers only revenue from taxes imposed under Section 59-14-804. This applies for fiscal years beginning on or after July 1, 2026.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 25Governor Spencer Cox SignedBecame Law
- Mar 16House/ to GovernorTo Governor
- Mar 16House/ received enrolled bill from PrintingMinor
- Mar 12House/ enrolled bill to Printing
- Mar 12Enrolled Bill Returned to House or SenateMinor
- Mar 7Draft of Enrolled Bill Prepared
- Mar 7Bill Received from House for EnrollingMinor
- Mar 6House/ signed by Speaker/ sent for enrollingMajor
- Vote recorded House/ concurs with Senate amendment. Result: pass.Lower
- Vote recorded Senate/ passed 2nd & 3rd readings/ suspension. Result: pass.Upper
- Mar 6House/ received from SenateMinor
- Mar 6Senate/ to House
- Mar 6Senate/ signed by President/ returned to HouseMajor
- Mar 6Senate/ received from HouseMinor
- Mar 6House/ to Senate
- Mar 6House/ concurs with Senate amendmentMajor
- Mar 6House/ placed on Concurrence Calendar
- Mar 6House/ received from SenateMinor
- Mar 6Senate/ to House with amendments
- Mar 6Senate/ passed 2nd & 3rd readings/ suspensionMajor
- Mar 6Senate/ substituted
- Mar 6Senate/ 2nd readingMinor
- Mar 6LFA/ fiscal note publicly available for HB0337S07
- Mar 6Senate/ motion to reconsider
- Mar 6LFA/ fiscal note sent to sponsor for HB0337S07
- Mar 6LFA/ bill sent to agencies for fiscal input for HB0337S07
- Mar 6LFA/ bill assigned to staff for fiscal analysis for HB0337S07
- Mar 5Senate/ to House with amendments
- Vote recorded Senate/ passed 2nd & 3rd readings/ suspension. Result: pass.Upper
- Mar 5Senate/ passed 2nd & 3rd readings/ suspensionPassed Senate
- Mar 5Senate/ substituted
- Mar 5Senate/ uncircled
- Mar 5LFA/ bill sent to agencies for fiscal input for HB0337S06
- Mar 5LFA/ bill assigned to staff for fiscal analysis for HB0337S06
- Mar 5Senate/ circled
- Mar 5Senate/ substituted
- Mar 5Senate/ uncircled
- Mar 5LFA/ bill sent to agencies for fiscal input for HB0337S05
- Mar 5LFA/ bill assigned to staff for fiscal analysis for HB0337S05
- Mar 5LFA/ fiscal note publicly available for HB0337S04
- Mar 5Senate/ circled
- Mar 5Senate/ 2nd & 3rd readings/ suspensionMinor
- Mar 5LFA/ fiscal note sent to sponsor for HB0337S04
- Mar 5LFA/ bill sent to agencies for fiscal input for HB0337S04
- Mar 5LFA/ bill assigned to staff for fiscal analysis for HB0337S04
- Mar 5Senate/ Rules to 2nd Reading Calendar
- Mar 5Senate/ 2nd Reading Calendar to Rules [Senate Rules Committee]Minor
- Mar 3Senate/ placed on 2nd Reading Calendar
- Mar 3Senate/ comm rpt/ substituted [Senate Business and Labor Committee]
- Mar 3LFA/ fiscal note publicly available for HB0337S03
- Mar 3LFA/ fiscal note sent to sponsor for HB0337S03
- Mar 3Senate Comm - Favorable Recommendation [Senate Business and Labor Committee]Minor
- Mar 3Senate Comm - Substitute Recommendation [Senate Business and Labor Committee]Major
- Mar 2LFA/ bill sent to agencies for fiscal input for HB0337S03
- Mar 2LFA/ bill assigned to staff for fiscal analysis for HB0337S03
- Feb 27Senate/ to standing committee [Senate Business and Labor Committee]Minor
- Feb 25LFA/ fiscal note publicly available for HB0337S02
- Feb 25LFA/ fiscal note sent to sponsor for HB0337S02
- Feb 24Senate/ 1st reading (Introduced)Minor
- Feb 24Senate/ received from HouseMinor
- Feb 23House/ to Senate
- Vote recorded House/ passed 3rd reading. Result: pass.Lower
- Feb 23House/ passed 3rd readingPassed House
- Feb 23House/ substituted
- Feb 23House/ uncircled
- Feb 23LFA/ bill sent to agencies for fiscal input for HB0337S02
- Feb 23LFA/ bill assigned to staff for fiscal analysis for HB0337S02
- Feb 23House/ circled
- Feb 23House/ 3rd readingMinor
- Feb 17House/ 2nd readingMinor
- Feb 17House/ comm rpt/ substituted [House Revenue and Taxation Committee]
- Feb 13House Comm - Favorable Recommendation [House Revenue and Taxation Committee]Minor
- Feb 13House Comm - Substitute Recommendation [House Revenue and Taxation Committee]Major
- Feb 13LFA/ fiscal note publicly available for HB0337S01
- Feb 12LFA/ fiscal note sent to sponsor for HB0337S01
- Feb 12House Comm - Not Considered [House Revenue and Taxation Committee]
- Feb 12LFA/ bill sent to agencies for fiscal input for HB0337S01
- Feb 12LFA/ bill assigned to staff for fiscal analysis for HB0337S01
- Feb 3House/ to standing committee [House Revenue and Taxation Committee]Minor
- Jan 26House/ received fiscal note from Fiscal AnalystMinor
- Jan 26LFA/ fiscal note publicly available for HB0337
- Jan 26LFA/ fiscal note sent to sponsor for HB0337
- Jan 23House/ 1st reading (Introduced)Minor
- Jan 23House/ received bill from Legislative ResearchMinor
- Jan 22LFA/ bill sent to agencies for fiscal input for HB0337
- Jan 22LFA/ bill assigned to staff for fiscal analysis for HB0337
- Jan 22Numbered Bill Publicly Distributed
- Jan 22Bill Numbered but not DistributedIntroduced
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