Wisconsin Senate Bill SB544

Wisconsin 2025-2026 Regular Session

• Introduced: 10/17/25
• Refer: 10/17/25
• Failed: 3/23/26

Caption

An Act to renumber 139.315 (1); to renumber and amend 139.30 (1m); to amend 139.31 (1) (a), 139.31 (1) (b), 139.31 (1) (c) and 139.31 (1) (d); to create 139.30 (1m) (b), 139.31 (1) (e), 139.31 (1) (f), 139.31 (1) (g), 139.31 (1) (h) and 139.315 (1) (b) of the statutes; Relating to: the cigarette excise tax and cigarettes that involve heating tobacco without combustion. (FE)

Summary

SB544 revises Wisconsin’s cigarette excise tax statutes to distinguish between traditional cigarettes and a new category of cigarettes that heat tobacco without combustion. The bill renumbers and amends the statutory definition of “cigarette” so that conventional burnable cigarettes remain under current law, while separately defining cigarettes that contain tobacco and are intended to be used with heating rather than burning, excluding vapor products. For the new heated-tobacco category, the bill creates a separate tax schedule set at roughly half the rate applied to conventional cigarettes. It also preserves the existing weight- and length-based structure used for cigarette taxation, including per-cigarette rates for products weighing not more than or more than 3 pounds per thousand and special treatment for longer cigarettes. The bill further adds an inventory tax when the new rates increase, requiring distributors and others holding taxed inventory or stamps to remit the difference within 30 days. The act would take effect on the first day of the third month after publication.

Impact

The bill would amend chapter 139 of the Wisconsin statutes, especially the cigarette tax provisions in ss. 139.30, 139.31, and 139.315. It would create a separate statutory tax classification for heated tobacco products that are not vapor products, apply lower excise rates to that category, and impose inventory-tax obligations tied to future rate increases. The practical effect would be to alter tax treatment for cigarette manufacturers, distributors, retailers, and holders of cigarette tax stamps, while also clarifying how these products are defined for state tax purposes.

Sentiment

The available context shows limited public or committee debate, but the bill’s introduction by a bipartisan group of senators and assembly cosponsors suggests at least some cross-party interest in updating tobacco tax law. The bill ultimately failed to pass pursuant to Senate Joint Resolution 1, indicating it did not advance to enactment despite being formally introduced and referred to committee. With no recorded votes or transcripts provided, the overall sentiment can only be characterized as procedurally active but not successful.

Contention

The main policy issue appears to be whether heated tobacco products should be taxed separately and at a lower rate than conventional cigarettes. Supporters likely view the bill as a modernization of the tax code that recognizes product differences and preserves revenue through a tailored excise structure, while opponents may object to creating a lower-tax category for tobacco products that still deliver nicotine. Another possible point of contention is the exclusion of vapor products, which leaves those products outside the new tax framework and may reflect a deliberate policy choice about how different nicotine products should be treated.