Oklahoma lawmakers approved legislation amending the state’s cigarette stamp tax law to extend a 50% tax exemption to cigarettes “intended to be heated rather than burned,” effectively lowering the excise burden on heated tobacco products. The measure revises definitions in existing statute to clarify that products designed to be heated still fall within the legal definition of a cigarette, but then carves out a partial exemption for those products from the stamp excise tax. The change applies within Oklahoma’s long-standing cigarette tax framework under the oversight of the Oklahoma Tax Commission.
The law directs the Tax Commission to create rules to implement the exemption and ensure appropriate tax stamps are available for heated products before the act takes effect on November 1, 2026.