HB 337 — Nicotine Product Tax Amendments
Last action — Governor Signed
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed House
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✓Passed Senate
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 22, 2026. Enacted.
Signed by Governor Spencer Cox (Republican) on March 25, 2026.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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2 sponsors
1 primary, 1 co-sponsors signed on.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Bill Text
What changed in the latest version
296 added · 350 removedPlain-language change summary
The recent changes to HB 337 focus on increasing taxes on nicotine products, including cigarettes and electronic cigarettes. The bill now shifts from a weight-based tax to a more straightforward tax structure based on either the number of products or a percentage of the manufacturer's sales price for various alternative nicotine products. Additionally, a new tax on existing cigarette inventory will be implemented as part of this transition. These updates are important because they aim to discourage nicotine use and increase state revenue for health programs.
HB0337S07Enrolled comparedCopy withH.B. HB0337 {Omitted text} shows text that was in HB0337 but was omitted in HB0337S07 inserted text shows text that was not in HB0337 but was inserted into HB0337S07 DISCLAIMER:
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NicotineWard ProductKay TaxJ. Amendments GENERAL SESSION STATE OF UTAH Chief Sponsor:
TylerChristofferson ClancyTracy SenateJ. Sponsor:Jerry W Stevenson 3 LONG TITLE General Description:
ThisMiller billPaul modifiesA. {taxes applicable } provisions related to nicotine {products} product taxes.
Cutler Clinton D.
Okerlund 3 LONG TITLE General Description:
This bill modifies provisions related to nicotine product taxes.
▸ increases the {rate } rates of the {tax } taxes levied on cigarettes, electronic cigarettes, and nontherapeutic nicotine devices;
▸ replaces {a } the weight-based tax rate for {moist snuff and } alternative nicotine products withwith: {a tax rate based on a percentage of the manufacturer's sales price;} :
▸● {repeals provisions providing for } a per product tax raterate, {reduction } , for {certain modified risk tobacco } alternative nicotine productsthatproducts that contain pouches;
{and} or ● a tax rate based on a percentage of the manufacturer's sales price, for alternatHvealternative nicotine products that do not contain pouches;
B ▸ imposes a transitional inventory tax on cigarettes subject to the tax increase descr3beddescribed in this bill;
HB0337 compared with HB0337S07 ▸ requires the Division of Finance to transfer the additional revenue generated by the tax increases described in this bill for electronic cigarettes, nontherapeutic nicotine devices, and alternative nicotine products to the General Fund;
and ▸ makes technical {and conforming } changes.
NoneH.B. Other Special Clauses:
337 Enrolled Copy None Other Special Clauses:
59-14-102 (Effective 07/01/26), as last amended by Laws of Utah 2025, Chapter 173 59-14-204 (Effective 07/01/26), as last amended by Laws of Utah 2016, Chapter 168 59-14-215 (Effective 07/01/26), as enacted by Laws of Utah 2010, Chapter 415 and last amended by Coordination Clause, Laws of Utah 2010, Chapter 407 {59-14-302 , as last amended by Laws of Utah 2020, Chapter 347} 59-14-804 (Effective 07/01/26), as last amended by Laws of Utah 2023, Chapter 300 59-14-807 (Effective 07/01/26) (Partially Repealed 07/01/30), as last amended by Laws of Utah 2025, Chapters 173, 366 REPEALS:Be it enacted by the Legislature of the state of Utah:
{59-14-104 , as enacted by Laws of Utah 2020, Chapter 347} Be it enacted by the Legislature of the state of Utah:
59-14-102.59-14-102 (Effective 07/01/26).
or - 2 - HB0337 compared with HB0337S07 (iv) whether the tobacco is heated or burned;
(3) "Cigarette rolling machine" means a device or machine that has the capability to produce at least 150 cigarettes in less than 30 minutes.
(a)(a)(i) (i) controls, leases, owns, possesses, or otherwise has available for use a cigarette rolling machine;
and (ii) makes the cigarette rolling machine available for use by another person to produce- a2 cigarette;- Enrolled Copy H.B.
337 produce a cigarette;
(7)(7)(a) (a) "Electronic cigarette" means the same as that term is defined in Section 76-9-1101.
and - 3 - HB0337 compared with HB0337S07 (ii) that is not exclusively natural leaf tobacco.
(13)(13)(a) (a) Except as provided in Subsection (13)(b), "manufacturer" means a person that:
(b)- has3 at- leastH.B. 45% moisture content, as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
337 Enrolled Copy (b) has at least 45% moisture content, as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
- 4 - HB0337 compared with HB0337S07 [(19)] (20) "Nontherapeutic nicotine product" means the same as that term is defined in Section 76-9-1101.
[(23)] (24) "Stamp" means the indicia required to be placed on a cigarette package that evidences- payment4 of- theEnrolled taxCopy onH.B. cigarettes required by Section 59-14-205.
[(24)]337 (25)evidences (a)payment "Tobaccoof product"the meanstax aon productcigarettes maderequired of,by orSection containing,59-14-205. tobacco.
[(24)] (25)(a) "Tobacco product" means a product made of, or containing, tobacco.
Show all 117 changed lines (77 more)
59-14-204.59-14-204 (Effective 07/01/26).
(EffectiveTax 07/01/26)Tax basis -- Rate -- Future increase -- Cigarette Tax Restricted Account -- Appropriation and expenditure of revenues.
(2) The [rates of the tax levied under Subsection (1) are, beginning on July 1, 2010:] rate of the tax levied under Subsection (1) is {18.5 } 11 cents on each cigarette.
and] - 5 - HB0337 compared with HB0337S07 [(b) 9.963 cents on each cigarette, for all cigarettes weighing in excess of three pounds per thousand cigarettes.] (3) Except as otherwise provided under this chapter, the tax levied under Subsection (1) shall be paid by any person who is the manufacturer, jobber, importer, distributor, wholesaler, retailer, user, or consumer.
(5)(5)(a) (a) There is created within the General Fund a restricted account known as the "Cigarette Tax Restricted Account." (b) The Cigarette Tax Restricted Account consists of:
(i)- $250,0005 to- theH.B. Department of Health to be expended for a tobacco prevention and control media campaign targeted towards children;
337 Enrolled Copy (i) $250,000 to the Department of Health to be expended for a tobacco prevention and control media campaign targeted towards children;
59-14-215.59-14-215 (Effective 07/01/26).
- 6 - HB0337 compared with HB0337S07 (1) In addition to the tax described in Section 59-14-204, there is imposed, beginning on July 1, [2010] 2026, an inventory tax on all cigarettes subject to the tax described in Section 59-14-204, upon the sale, use, storage, or distribution of those cigarettes in the state, as follows:
(i) the tax imposed on those cigarettes under Section 59-14-204, beginning on July 1, [2010][ 2010] 2026;
(3)- A6 person- describedEnrolled inCopy SubsectionH.B. (2) shall remit the tax imposed in this section, on a return prescribed by the commission, on or before July 31, [2010] 2026.
337 (3) A person described in Subsection (2) shall remit the tax imposed in this section, on a return prescribed by the commission, on or before July 31, [2010] 2026.
(6)(6)(a) (a) Beginning on July 1, [2010] 2026, it is unlawful to affix a stamp to cigarettes that reflects payment of the tax imposed under Section 59-14-204 at the rate that was applicable on or before June 30, [2010] 2026.
{Section 2.
Section 59-14-302 is amended to read:
} 59-14-302.
Tax basis -- Rates.
- 7 - HB0337 compared with HB0337S07 (1) As used in this section:
(a) "Manufacturer's sales price" means the amount the manufacturer of a tobacco product charges after subtracting a discount.
(b) "Manufacturer's sales price" includes an original Utah destination freight charge, regardless of:
(i) whether the tobacco product is shipped f.o.b.
origin or f.o.b.
destination;
or (ii) who pays the original Utah destination freight charge.
(2) There is levied a tax upon the sale, use, or storage of tobacco products in the state.
(3) (a) Subject to Subsection (3)(b), the tax levied under Subsection (2) shall be paid by the manufacturer, jobber, distributor, wholesaler, retailer, user, or consumer.
(b) The tax levied under Subsection (2) on a cigarette produced from a cigarette rolling machine shall be paid by the cigarette rolling machine operator.
(4) For tobacco products except for[ moist snuff,] a little cigar[,] or a cigarette produced from a cigarette rolling machine, the amount of the tax under this section is .86 multiplied by the manufacturer's sales price.
[(5) (a) Subject to Subsection (5)(b), the tax under this section on moist snuff is imposed:] [(i) at a rate of $1.83 per ounce;
and] [(ii) on the basis of the net weight of the moist snuff as listed by the manufacturer.] [(b) If the net weight of moist snuff is in a quantity that is a fractional part of one ounce, a proportionate amount of the tax described in Subsection (5)(a) is imposed:] [(i) on that fractional part of one ounce;
and] [(ii) in accordance with rules made by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.] [(6)] (5) (a) A little cigar is taxed at the same tax rates as a cigarette is taxed under Subsection 59-14-204(2).
(b) (i) Subject to Subsection [(6)(b)(ii)] (5)(b)(ii), a cigarette produced from a cigarette rolling machine is taxed at the same tax rates as a cigarette is taxed under Subsection 59-14-204(2).
(ii) A tax under this Subsection [(6)(b)] (5)(b) is imposed on the date the cigarette is produced from the cigarette rolling machine.
- 8 - HB0337 compared with HB0337S07 [(7)] (6) (a) Moisture content of a tobacco product is determined at the time of packaging.
(b) A manufacturer who distributes a tobacco product in, or into, Utah, shall:
(i) for a period of three years after the last day on which the manufacturer distributes the tobacco product in, or into, Utah, keep valid scientific evidence of the moisture content of the tobacco product available for review by the commission, upon demand;
and (ii) provide a document, to the person described in Subsection (3) to whom the manufacturer distributes the tobacco product, that certifies the moisture content of the tobacco product, as verified by the scientific evidence described in Subsection [(7)(b)(i)] (6)(b)(i).
(c) A manufacturer who fails to comply with the requirements of Subsection [(7)(b)] (6)(b) is liable for the nonpayment or underpayment of taxes on the tobacco product by a person who relies, in good faith, on the document described in Subsection [(7)(b)(ii)] (6)(b)(ii).
(d) A person described in Subsection (3) who is required to pay tax on a tobacco product:
(i) shall, for a period of three years after the last day on which the person pays the tax on the tobacco product, keep the document described in Subsection [(7)(b)(ii)] (6)(b)(ii) available for review by the commission, upon demand;
and (ii) is not liable for nonpayment or underpayment of taxes on the tobacco product due to the person's good faith reliance on the document described in Subsection [(7)(b)(ii)] (6)(b)(ii).
59-14-804.59-14-804 (Effective 07/01/26).
(EffectiveTaxation 07/01/26)Taxation of electronic cigarette substance, prefilled electronic cigarette, alternative nicotine product, nontherapeutic nicotine device substance, and prefilled nontherapeutic nicotine device.
(1)(1)(a) (a) Beginning on July 1, 2020, a tax is imposed upon the following:
(2)(2)(a) - 9 - HB0337 compared with HB0337S07 (a) The amount of tax imposed under Subsections (1)(a) and (b) is [.56] .71 multiplied by the manufacturer's sales price.
(b)(b)(i) (i) The amount of tax imposed under Subsection (1)(c) on an alternative nicotine product that is a nicotine pouch product is {.86 multiplied by the manufacturer's sales price.} the sum of:
{[(b)} {(i)} } (A) $1;
and (B) 5 cents on each pouch contained within the alternative nicotine product in excess of 20 pouches.
(ii) The amount of tax imposed under Subsection (1)(c) on an alternative nicotine product- that7 is- notH.B. a nicotine pouch product is .73 multiplied by the manufacturer's sales price.
[(b)337 (i)Enrolled TheCopy taxproduct underthat Subsectionis (1)(c)not ona an alternative nicotine pouch product is imposed:].73 [(A)multiplied atby athe ratemanufacturer's ofsales $1.83price. per ounce;
[(b)(i) The tax under Subsection (1)(c) on an alternative nicotine product is imposed:] [(A) at a rate of $1.83 per ounce;
(4)(4)(a) (a) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user shall pay the tax levied under Subsection (1) at the time that an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device is first received in the state.
(b) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user may not resell an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine product, a - 10 - HB0337 compared with HB0337S07 nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device to another distributor, another retailer, or a consumer before paying the tax levied under Subsection (1).
(5)(5)(a) (a) The manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user shall remit the taxes collected in accordance with this section to the commission.
59-14-807.59-14-807 (Effective 07/01/26) (Partially Repealed 07/01/30).
(1)- There8 is- createdEnrolled withinCopy theH.B. General Fund a restricted account known as the "Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account." (2) The Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account consists of:
337 (1) There is created within the General Fund a restricted account known as the "Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account." (2) The Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account consists of:
(3)(3)(a) (a) Subject to Subsections (3)(b) and (c), for each fiscal year and subject to appropriation by the Legislature, the Division of Finance shall distribute from the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account:
(i) $2,000,000 to the Department of Health and Human Services for enforcement services aimed at disrupting organizations and networks that provide tobacco products, electronic cigarette - 11 - HB0337 compared with HB0337S07 products, nicotine products, or other illegal controlled substances to minors, which the Department of Health and Human Services shall allocate to the local health departments using the formula created in accordance with Section 26A-1-116;
(iv) $3,000,000 to the Department of Health and Human Services for community partner prevention programs, which the Department of Health and Human Services- shall9 allocate- toH.B. the local health departments using the formula created in accordance with Section 26A-1-116;
337 Enrolled Copy Services shall allocate to the local health departments using the formula created in accordance with Section 26A-1-116;
- 12 - HB0337 compared with HB0337S07 (ii) to the Department of Health and Human Services, in an amount necessary for completing duties described in Section 59-14-810;
(4)(4)(a) (a) The local health departments shall use the money received in accordance with Subsection (3)(a) for enforcing:
(b)- The10 Department- ofEnrolled HealthCopy andH.B. Human Services shall use the money received in accordance with Subsection (3)(a)(v) for the Youth Electronic Cigarette, Marijuana, and Other Drug Prevention Program created in Section 26B-1-428.
337 (b) The Department of Health and Human Services shall use the money received in accordance with Subsection (3)(a)(v) for the Youth Electronic Cigarette, Marijuana, and Other Drug Prevention Program created in Section 26B-1-428.
(d) The State Board of Education shall use the money received in accordance with Subsection (3)(a)(3)(a)(vii) (vii) to distribute to local education agencies to pay for:
(i)(i)(A) (A) stipends for positive behaviors specialists as described in Subsection 53G-10-407(4)(a)(i);
(B) the cost of administering the positive behaviors plan as described in Subsection 53G-10-407(4)(a)53G-10-407(4)(a)(ii); (ii);
and (C) the cost of implementing an Underage Drinking and Substance Abuse Prevention Program in grade 4 or 5, as described in Subsection 53G-10-406(3)(b);
(5)(5)(a) (a) The fund shall earn interest.
- 13 - HB0337 compared with HB0337S07 [(6)] (7) Subject to legislative appropriations, funds remaining in the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account after the distribution described in Subsection (3) may only be used for:
Effective date.
Section- 6.11 -
Repealer.
This Bill Repeals:
Section 59-14-104, Rate reduction for modified risk tobacco products.
3-5-26 7:36 PM - 14 -
Show all 117 changed rows (77 more)
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- Enrolled View text Current pdf
- Comparison to Original Bill View text pdf
- Comparison to Sub #1 View text pdf
- Comparison to Sub #2 View text pdf
- Comparison to Sub #3 View text pdf
- Comparison to Sub #4 View text pdf
- Comparison to Sub #5 View text pdf
- Comparison to Sub #6 View text pdf
- Substitute Substitute #1 pdf
- Substitute Substitute #2 pdf
- Substitute Substitute #3 pdf
- Substitute Substitute #4 pdf
- Substitute Substitute #5 pdf
- Substitute Substitute #6 pdf
- Substitute Substitute #7 pdf
- Introduced View text pdf
Amendments
1 amendmentClick Show changes on an amendment above to see how it modifies the bill.
Action History
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Governor Signed
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House/ to Governor
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House/ received enrolled bill from Printing
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House/ enrolled bill to Printing
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Enrolled Bill Returned to House or Senate
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Draft of Enrolled Bill Prepared
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Bill Received from House for Enrolling
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House/ signed by Speaker/ sent for enrolling
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House/ received from Senate
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Senate/ to House
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Senate/ signed by President/ returned to House
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Senate/ received from House
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House/ to Senate
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House/ concurs with Senate amendment
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House/ placed on Concurrence Calendar
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House/ received from Senate
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Senate/ to House with amendments
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Senate/ passed 2nd & 3rd readings/ suspension
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Senate/ substituted
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Senate/ 2nd reading
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LFA/ fiscal note publicly available for HB0337S07
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Senate/ motion to reconsider
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LFA/ fiscal note sent to sponsor for HB0337S07
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LFA/ bill sent to agencies for fiscal input for HB0337S07
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LFA/ bill assigned to staff for fiscal analysis for HB0337S07
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Senate/ to House with amendments
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Senate/ passed 2nd & 3rd readings/ suspension
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Senate/ substituted
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Senate/ uncircled
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LFA/ bill sent to agencies for fiscal input for HB0337S06
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LFA/ bill assigned to staff for fiscal analysis for HB0337S06
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Senate/ circled
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Senate/ substituted
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Senate/ uncircled
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LFA/ bill sent to agencies for fiscal input for HB0337S05
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LFA/ bill assigned to staff for fiscal analysis for HB0337S05
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LFA/ fiscal note publicly available for HB0337S04
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Senate/ circled
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Senate/ 2nd & 3rd readings/ suspension
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LFA/ fiscal note sent to sponsor for HB0337S04
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LFA/ bill sent to agencies for fiscal input for HB0337S04
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LFA/ bill assigned to staff for fiscal analysis for HB0337S04
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Senate/ Rules to 2nd Reading Calendar
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Senate/ 2nd Reading Calendar to Rules [Senate Rules Committee]
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Senate/ placed on 2nd Reading Calendar
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Senate/ comm rpt/ substituted [Senate Business and Labor Committee]
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LFA/ fiscal note publicly available for HB0337S03
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LFA/ fiscal note sent to sponsor for HB0337S03
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Senate Comm - Favorable Recommendation [Senate Business and Labor Committee]
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Senate Comm - Substitute Recommendation [Senate Business and Labor Committee]
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LFA/ bill sent to agencies for fiscal input for HB0337S03
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LFA/ bill assigned to staff for fiscal analysis for HB0337S03
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Senate/ to standing committee [Senate Business and Labor Committee]
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LFA/ fiscal note publicly available for HB0337S02
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LFA/ fiscal note sent to sponsor for HB0337S02
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Senate/ 1st reading (Introduced)
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Senate/ received from House
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House/ to Senate
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House/ passed 3rd reading
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House/ substituted
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House/ uncircled
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LFA/ bill sent to agencies for fiscal input for HB0337S02
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LFA/ bill assigned to staff for fiscal analysis for HB0337S02
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House/ circled
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House/ 3rd reading
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House/ 2nd reading
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House/ comm rpt/ substituted [House Revenue and Taxation Committee]
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House Comm - Favorable Recommendation [House Revenue and Taxation Committee]
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House Comm - Substitute Recommendation [House Revenue and Taxation Committee]
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LFA/ fiscal note publicly available for HB0337S01
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LFA/ fiscal note sent to sponsor for HB0337S01
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House Comm - Not Considered [House Revenue and Taxation Committee]
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LFA/ bill sent to agencies for fiscal input for HB0337S01
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LFA/ bill assigned to staff for fiscal analysis for HB0337S01
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House/ to standing committee [House Revenue and Taxation Committee]
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House/ received fiscal note from Fiscal Analyst
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LFA/ fiscal note publicly available for HB0337
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LFA/ fiscal note sent to sponsor for HB0337
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House/ 1st reading (Introduced)
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House/ received bill from Legislative Research
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LFA/ bill sent to agencies for fiscal input for HB0337
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LFA/ bill assigned to staff for fiscal analysis for HB0337
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Numbered Bill Publicly Distributed
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Bill Numbered but not Distributed
Sponsors
- Jerry W Stevenson · Cosponsor
- T. Clancy · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 1 co-sponsors · 102 not signed on
Sponsors (1)
Co-sponsors (1)
- Stevenson, Jerry W
Not signed on (102)
102 members have not signed on to this bill.
Show all 102 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors HB 337?
- HB 337 is sponsored by Stevenson, Jerry W and Clancy, T..
- What is the current status of HB 337?
- This bill has been enacted into law. Introduced January 22, 2026. Enacted.
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