R.I. Gen. Laws § 44-20-13.2 — Tax imposed on other tobacco products, smokeless tobacco, cigars, pipe tobacco products, and electronic nicotine-delivery products

(a) A tax is imposed on all other tobacco products, smokeless tobacco, cigars, pipe tobacco
products, and electronic nicotine-delivery system products sold, or held for sale
in the state by any person, the payment of the tax to be accomplished according to
a mechanism established by the administrator, division of taxation, department of
revenue. The tax imposed by this section shall be as follows:
(1) For all other tobacco products, smokeless tobacco, cigars, and pipe tobacco products,
at the rate of eighty percent (80%) of the wholesale cost of other tobacco products,
cigars, pipe tobacco products, and smokeless tobacco other than snuff.
(2) Notwithstanding the eighty percent (80%) rate in subsection (a)(1) of this section,
in the case of cigars, the tax shall not exceed fifty cents ($.50) for each cigar.
(3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the
like rate on all fractional parts of an ounce thereof. Such tax shall be computed
based on the net weight as listed by the manufacturer; provided, however, that any
product listed by the manufacturer as having a net weight of less than 1.2 ounces
shall be taxed as if the product has a net weight of 1.2 ounces.
(4) Effective January 1, 2025:
(i) For electronic nicotine-delivery system products that are prefilled, sealed by the
manufacturer, and not refillable, at the rate of fifty cents per milliliter ($0.50/mL)
of the e-liquid and/or e-liquid products contained therein; and
(ii) For any other electronic nicotine-delivery system products, at the rate of ten percent
(10%) of the wholesale cost of such products, whether or not sold at wholesale, and
if not sold, then at the same rate upon the use by the wholesaler.
(iii) Existing Inventory Floor Tax. For all electronic nicotine-delivery system products held by licensed electronic
nicotine-delivery system products retailers as of January 1, 2025: Each person engaging
in the business of selling electronic nicotine-delivery system products at retail
in this state shall pay a tax measured by the volume of e-liquid and/or e-liquid products
contained in electronic nicotine-delivery system products that are prefilled, sealed
by the manufacturer, and not refillable and the wholesale cost of all other electronic
nicotine-delivery system products held by the person in this state at 12:01 a.m. on
January 1, 2025, and is computed for electronic nicotine-delivery system products
that are prefilled, sealed by the manufacturer, and not refillable, at the rate of
fifty cents per milliliter ($0.50/mL) of the e-liquid and/or e-liquid products contained
therein and for any other electronic nicotine-delivery system products at the rate
of ten percent (10%) of the wholesale cost of such products on January 1, 2025. Each
person subject to the payment of the tax imposed by this section shall, on or before
January 16, 2025, file a return, under oath or certified under the penalties of perjury,
with the administrator on forms furnished by the administrator, showing the volume
of e-liquid and/or e-liquid products contained in electronic nicotine-delivery system
products which are prefilled, sealed by the manufacturer, and not refillable and the
wholesale cost of all other electronic nicotine-delivery system products in that person’s
possession in this state at 12:01 a.m. on January 1, 2025, as described in this section,
and the amount of tax due, and shall at the time of filing the return pay the tax
to the administrator. Failure to obtain forms shall not be an excuse for the failure
to make a return containing the information required by the administrator.
(iv) For all electronic nicotine-delivery system products sold by licensed electronic nicotine-delivery
system products distributors, manufacturers, and/or importers in Rhode Island as of
January 1, 2025: Any person engaging in the business of distributing at wholesale
electronic nicotine-delivery system products in this state shall pay a tax measured
by the volume of e-liquid and/or e-liquid products contained in electronic nicotine-delivery
system products that are prefilled, sealed by the manufacturer, and not refillable
computed at the rate of fifty cents per milliliter ($0.50/mL) of the e-liquid and/or
e-liquid products contained therein and for all other electronic nicotine-delivery
system products at the rate of ten percent (10%) of the wholesale cost of such products.
(b)(1) Prior to January 1, 2025, any dealer having in the dealer’s possession any other tobacco
products with respect to the storage or use of which a tax is imposed by this section
shall, within five (5) days after coming into possession of the other tobacco products
in this state, file a return with the tax administrator in a form prescribed by the
tax administrator. The return shall be accompanied by a payment of the amount of the
tax shown on the form to be due. Records required under this section shall be preserved
on the premises described in the relevant license in such a manner as to ensure permanency
and accessibility for inspection at reasonable hours by authorized personnel of the
administrator.
(2) Effective January 1, 2025, all other tobacco products, except for cigars, and electronic
nicotine-delivery system products sold at wholesale in Rhode Island must be sold by
a Rhode Island licensed distributor, manufacturer, or importer, and purchases of other
tobacco products, except for cigars, and/or electronic nicotine-delivery system products,
from an unlicensed distributor, manufacturer, or importer are prohibited. Any other
tobacco products, except for cigars, and/or electronic nicotine-delivery system products
purchased and/or obtained from an unlicensed person shall be subject to the terms
of this chapter including, but not limited to, § 44-20-15 and shall be taxed pursuant to this section.
(3) Effective January 1, 2025, any dealer having in the dealer’s possession any cigars
with respect to the storage or use of which a tax is imposed by this section shall,
within five (5) days after coming into possession of cigars in this state, file a
return with the tax administrator in a form prescribed by the tax administrator. The
return shall be accompanied by a payment of the amount of the tax shown on the form
to be due. Records required under this section shall be preserved on the premises
described in the relevant license in such a manner as to ensure permanency and accessibility
for inspection at reasonable hours by authorized personnel of the administrator.
(c) Existing Inventory Floor Tax.
(1) For all nicotine products defined in § 44-20-1 as other tobacco products but not previously taxed as other tobacco products held
by licensed retailers as of October 1, 2025: Each person engaging in the business
of selling nicotine products at retail in this state shall pay a tax at the rate of
eighty percent (80%) of the wholesale cost of such products on October 1, 2025. Each
person subject to the payment of the tax imposed by this section shall, on or before
October 16, 2025, file a return, under oath or certified under the penalties of perjury,
with the administrator on forms furnished by the administrator, showing the wholesale
cost of all nicotine products not previously taxed as other tobacco products in that
person’s possession in this state at 12:01 a.m. on October 1, 2025, as described in
this section, and the amount of tax due, and shall at the time of filing the return
pay the tax to the administrator. Failure to obtain forms shall not be an excuse for
the failure to make a return containing the information required by the administrator.
(2) For all nicotine products defined in § 44-20-1 as other tobacco products but not previously taxed as other tobacco products held
by licensed distributors, manufacturers, and/or importers in Rhode Island as of October
1, 2025: Each person engaging in the business of distributing at wholesale nicotine
products defined in § 44-20-1 as other tobacco products but not previously taxed as other tobacco products in this
state shall pay a tax at the rate of eighty percent (80%) of the wholesale cost of
such products on October 1, 2025. Each person subject to the payment of the tax imposed
by this section shall, on or before October 16, 2025, file a return, under oath or
certified under the penalties of perjury, with the administrator on forms furnished
by the administrator, showing the wholesale cost of all nicotine products not previously
taxed as other tobacco products in that person’s possession in this state at 12:01
a.m. on October 1, 2025, as described in this section, and the amount of tax due,
and shall at the time of filing the return pay the tax to the administrator. Failure
to obtain forms shall not be an excuse for the failure to make a return containing
the information required by the administrator.
(d) The proceeds collected are paid into the general fund.