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  • Feb 24, 2026
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HB337 Advances: Utah Proposes Restructuring Nicotine Product Taxes

02-17 · legislation · tax policy

HB337 Advances: Utah Proposes Restructuring Nicotine Product Taxes

Bill would raise cigarette tax by $2 per pack, shift moist snuff and alternative products to percentage‑based tax, and eliminate tax breaks for "reduced‑risk" items

Key takeaways

  • $2 per pack cigarette tax hike: HB337 proposes increasing Utah's cigarette tax by $2 per pack — the latest nicotine‑focused measure after 2025's near‑total e‑cigarette ban push.
  • Tax structure change for moist snuff & alternatives: shifts from weight‑based taxation to a percentage of manufacturer's sales price.
  • Elimination of "reduced‑risk" tax preference: would repeal current tax reductions for certain "reduced-risk tobacco products," ending their lower tax status.
  • Public health support: American Cancer Society Cancer Action Network says raising tobacco taxes is one of the most effective ways to reduce tobacco use, especially among youth.
  • Opposition concerns: industry and retail groups warn of cross‑border purchasing and negative impact on consumers seeking cessation alternatives.

According to KOAL News, the Utah Legislature is advancing a new bill to increase taxes on nicotine products.

During the 2025 legislative session, the state moved forward with a near‑total ban on e‑cigarette sales. Now, HB337 proposes adding a $2 per pack tax increase on cigarettes while raising taxes on other nicotine products.

The bill, introduced by Provo Republican Representative Tyler Clancy, goes beyond cigarette taxes. It would change the taxation of moist snuff and alternative nicotine products from a weight‑based system to a percentage‑of-price model based on the manufacturer's sales price. In addition, current tax breaks for certain "reduced-risk tobacco products" would be eliminated.

The American Cancer Society Cancer Action Network supports the measure, stating that increasing tobacco taxes is one of the most effective policy tools to reduce tobacco use, particularly among youth.

Support and opposition

✅ Supporters (public health groups): argue that higher taxes discourage smoking, especially among price‑sensitive youth.

⚠️ Opponents (tobacco industry, Utah Retailers Association, Taxpayers Association): raise concerns that:

  • Higher taxes may drive consumers to purchase nicotine products in neighboring states (cross‑border shopping).
  • Tax increases on alternative nicotine products could negatively affect consumers trying to quit smoking by making switching less affordable.

HB337 was approved by the House Revenue and Taxation Committee with a vote of 9-2 and now moves to the full House for consideration. If ultimately passed, the new tax rates would take effect July 1.

Source: 2Firsts, February 17, 2026 · based on reporting by KOAL News · Image reference: KOAL / Utah Legislature

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