Indicates Matter Stricken

Indicates New Matter

 

Committee Report

March 18, 2026

 

H. 4303

 

Introduced by Reps. Gatch, Cobb-Hunter, Sessions, M. M. Smith, Brewer, Rutherford, Gagnon, Guest, Guffey, Weeks, Hosey and Yow

 

S. Printed 3/18/26--S.

Read the first time May 6, 2025

 

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The committee on Senate Finance

To whom was referred a Bill (H. 4303) to amend the South Carolina Code of Laws by amending Section 12-21-620, relating to tax rates on products containing tobacco, so as to tax cigarettes for heating, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

 

   Amend the bill, as and if amended, SECTION 1, by striking Section 12-21-620(A) and inserting:

    (A) There shall be levied, assessed, collected, and paid in respect to the articles containing tobacco or nicotine enumerated in this section the following amounts:

       (1) upon all cigarettes for smoking made of tobacco or any substitute for tobacco, three and one-half mills on each cigarette;

       (2) upon all cigarettes for heating made of tobacco or any substitute for tobacco, fourteen and one-quarter mills on each cigarette. The proceeds of this item must be deposited in the South Carolina Medicaid Reserve Fund created pursuant to Section 11-11-230(B);

       (2)(3) upon all tobacco products, as defined in Section 12-21-800, five percent of the manufacturer's price;

       (4) upon all vapor products and electronic cigarettes, a tax of five cents per milliliter of consumable nicotine liquid solution or other material containing nicotine that is depleted as a vapor product is used. The proceeds of this item must be deposited in the South Carolina Medicaid Reserve Fund created pursuant to Section 11-11-230(B).

    Manufacturer's price as used in this section is the established price at which a manufacturer sells to a wholesaler.

Renumber sections to conform.

Amend title to conform.

HARVEY PEELER for Committee.

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 12-21-620, RELATING TO TAX RATES ON PRODUCTS CONTAINING TOBACCO, SO AS TO TAX CIGARETTES FOR HEATING ONE AND ONE-QUARTER mills ON EACH CIGARETTE.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Section 12-21-620 of the S.C. Code is amended to read:

 

    Section 12-21-620. (A) There shall be levied, assessed, collected, and paid in respect to the articles containing tobacco enumerated in this section the following amounts:

       (1) upon all cigarettes for smoking made of tobacco or any substitute for tobacco, three and one-half mills on each cigarette;

       (2) upon all cigarettes for heating made of tobacco or any substitute for tobacco, fourteen and one-quarter mills on each cigarette;

       (2)(3) upon all tobacco products, as defined in Section 12-21-800, five percent of the manufacturer's price.

    Manufacturer's price as used in this section is the established price at which a manufacturer sells to a wholesaler.

    (B) As used in this section, "cigarette" means:

       (1) any roll for smoking or heating under ordinary conditions of use containing tobacco or any substitute for tobacco wrapped in paper or in any substance other than a tobacco leaf; or

       (2) any roll for smoking or heating under ordinary conditions of use containing tobacco or any substitute for tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1) of this subsection.

 

SECTION 2.  This act takes effect October 1, 2025.

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