Oregon House Passes New Tax on Oral Nicotine Products
The Oregon House of Representatives has passed House Bill 3940, which would create a new tax on oral nicotine products like nicotine pouches. The bill, which passed in a 37-8 vote on Monday, now moves to the Senate for consideration before the legislative session adjourns on June 29.
Effective January 1st, the proposed legislation would impose a $0.65 tax on nicotine pouches with 20 units or less. For packages containing more than 20 units, an additional 3.25 cent tax would be applied for each additional unit. According to legislative records, this new tax is projected to raise approximately $14.3 million over the next two years.
Chief bill sponsor Rep. Bobby Levy (R-Echo) described the bill as a vital step in creating a sustainable funding mechanism. The move reflects a trend of states looking to tax newer nicotine products that have grown in popularity. Senator Anthony Broadman (D-Bend) noted, “Oregon has a long history of taxing nicotine products to support public health initiatives,” framing the new tax within that established policy context.
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