HB337 Moves Forward: Cigarette and Nicotine Taxes Set to Rise in Utah

Feb.17
HB337 Moves Forward: Cigarette and Nicotine Taxes Set to Rise in Utah
Utah lawmakers are advancing HB337, a bill that would raise the state cigarette tax by $2 per pack and restructure taxes on other nicotine products. The proposal replaces weight-based taxes with percentage-based rates and removes reduced rates for certain modified risk products. Supporters say it will curb youth tobacco use, while opponents warn of cross-border shopping and harm to consumers seeking alternatives.

Key Points

 

  • Utah lawmakers propose $2 cigarette tax increase

HB337 would increase Utah’s cigarette tax by $2 per pack, marking a significant policy shift after the state moved to ban nearly all vapes during the 2025 legislative session. The bill also raises taxes on other nicotine products.

 

  • Shift from weight-based to price-based taxation

The bill would replace the current weight-based tax on moist snuff and alternative nicotine products with a tax calculated as a percentage of the manufacturer’s sales price, changing how these products are taxed.

 

  • Supporters cite youth prevention and public health

The American Cancer Society Cancer Action Network supports the proposal, stating that raising tobacco taxes is one of the most effective ways to reduce tobacco use, especially among young people.

 

  • Opposition warns of cross-border purchases and consumer impact

Tobacco industry representatives and retail groups argue that higher taxes could push consumers to buy products in neighboring states. Others warn that increasing taxes on nicotine alternatives could affect smokers trying to quit.

 

  • Bill advances to House floor

HB337 passed the House Revenue and Taxation Committee with a 9-2 vote and now heads to the full House. If approved, the tax increases would take effect on July 1.

 


 

2Firsts, February 17, 2026

 

According KOAL News, lawmakers are once again targeting nicotine products, this time through a proposed $2 increase in the state cigarette tax.

 

Following a 2025 legislative session that advanced a ban on nearly all vape products, HB337 proposes further regulatory measures. The bill, introduced by Rep. Tyler Clancy (R-Provo), would raise cigarette taxes by $2 per pack and increase taxes on other nicotine products.

 

In addition to the cigarette tax increase, the legislation would replace the existing weight-based tax on moist snuff and alternative nicotine products with a tax calculated as a percentage of the manufacturer’s sales price. It would also repeal provisions that reduce tax rates for certain modified risk tobacco products.

 

The American Cancer Society Cancer Action Network has voiced support for HB337. The group describes tobacco tax increases as one of the most effective tools for reducing tobacco consumption, particularly among youth.

 

However, the proposal faces opposition from tobacco industry representatives, the Utah Retail Merchants Association, and the Utah Taxpayers Association. Critics argue that higher taxes may drive consumers to purchase nicotine products in neighboring states. Some also contend that raising taxes on nicotine alternatives could negatively impact individuals attempting to quit smoking.

 

HB337 passed the House Revenue and Taxation Committee in a 9-2 vote and will now proceed to the House floor. If enacted, the tax changes would take effect on July 1.

 

(cover image:castlecountryradio)


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