[Congressional Record Volume 158, Number 66 (Thursday, May 10, 2012)]
[Senate]
[Pages S3088-S3089]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself, Mr. Lautenberg, and Mr. Blumenthal):
  S. 3081. A bill to amend the Internal Revenue Code of 1986 to provide 
tax rate parity among all tobacco products, and for other purposes; to 
the Committee on Finance.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3081

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Tobacco Tax Equity Act of 
     2012''.

     SEC. 2. ESTABLISHING EXCISE TAX EQUITY AMONG ALL TOBACCO 
                   PRODUCT TAX RATES.

       (a) Tax Parity for Pipe Tobacco and Roll-your-own 
     Tobacco.--Section 5701(f) of the Internal Revenue Code of 
     1986 is amended by striking ``$2.8311 cents'' and inserting 
     ``$24.78''.
       (b) Tax Parity for Smokeless Tobacco.--
       (1) Section 5701(e) of the Internal Revenue Code of 1986 is 
     amended--
       (A) in paragraph (1), by striking ``$1.51'' and inserting 
     ``$13.42'';
       (B) in paragraph (2), by striking ``50.33 cents'' and 
     inserting ``$5.37''; and
       (C) by adding at the end the following:
       ``(3) Smokeless tobacco sold in discrete single-use 
     units.--On discrete single-use units, $50.33 per thousand.''.
       (2) Section 5702(m) of such Code is amended--
       (A) in paragraph (1), by striking ``or chewing tobacco'' 
     and inserting ``chewing tobacco, or discrete single-use 
     unit'';
       (B) in paragraphs (2) and (3), by inserting ``that is not a 
     discrete single-use unit'' before the period in each such 
     paragraph;
       (C) by adding at the end the following:
       ``(4) Discrete single-use unit.--The term `discrete single-
     use unit' means any product containing tobacco that--
       ``(A) is not intended to be smoked; and
       ``(B) is in the form of a lozenge, tablet, pill, pouch, 
     dissolvable strip, or other discrete single-use or single-
     dose unit.''.
       (c) Tax Parity for Large Cigars.--Paragraph (2) of section 
     5701(a) of the Internal Revenue Code of 1986, as amended by 
     this Act, is amended by striking ``but not more than 40.26 
     cents per cigar'' and inserting ``but not less than 5.033 
     cents per cigar and not more than 100.66 cents per cigar''.
       (d) Tax Parity for Roll-your-own Tobacco and Certain 
     Processed Tobacco.--Subsection (o) of section 5702 of the 
     Internal Revenue Code of 1986 is amended by inserting ``, or 
     processed tobacco removed or transferred to a person other 
     than a person with a permit provided under section 5713'' 
     after ``wrappers thereof''.
       (e) Clarifying Tobacco Product Definition and Tax Rate.--
       (1) In general.--Subsection (c) of section 5702 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(c) Tobacco Products.--The term `tobacco products' 
     means--
       ``(1) cigars, cigarettes, smokeless tobacco, pipe tobacco, 
     and roll-your-own tobacco, and
       ``(2) any other product containing tobacco that is intended 
     or expected to be consumed.''.

[[Page S3089]]

       (2) Tax rate.--Section 5701 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(i) Other Tobacco Products.--Any product described in 
     section 5702(c)(2) or not otherwise described under this 
     section, including any product that has been determined to be 
     a tobacco product by the Food and Drug Administration through 
     its authorities under the Family Smoking Prevention and 
     Tobacco Control Act, shall be taxed at a level of tax 
     equivalent to the tax rate for cigarettes on an estimated per 
     use basis as determined by the Secretary.''.
       (f) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to articles 
     removed (as defined in section 5702(j) of the Internal 
     Revenue Code of 1986) after the last day of the month which 
     includes the date of the enactment of this Act.
       (2) Discrete single-use units and processed tobacco.--The 
     amendments made by subsections (b)(1)(C), (b)(2), and (d) 
     shall apply to articles removed (as defined in section 
     5702(j) of the Internal Revenue Code of 1986) after the date 
     that is 6 months after the date of the enactment of this Act.

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