Texas Tobacco Tax Applies to Nicotine Pouches, State Tells Court
December 06, 2024 by bloombergtax.com
Texas Tobacco Tax Applies to Nicotine Pouches, State Tells Court
RJR Vapor Co. LLC's oral nicotine products are taxed as tobacco substitutes under Texas law, the state comptroller informed the Texas Supreme Court. The state is appealing a 2023 court decision that exempted RJR's VELO nicotine pouches from the Texas Cigars and Tobacco Products Tax. Despite a lower court ruling granting RJR a refund, Comptroller Hegar argues that the products offer a way to consume nicotine, keeping them subject to taxation.
