(d) Clarification of Definition of Small Cigars- Paragraphs (1) and (2) of section 5701(a) of the Internal Revenue Code of 1986 are each amended by striking ‘three pounds per thousand’ and inserting ‘four and one-half pounds per thousand’.
(e) Clarification of Definition of Cigarette- Paragraph (2) of section 5702(b) of the Internal Revenue Code of 1986 is amended by inserting before the final period the following: ‘, which includes any roll for smoking containing tobacco that weighs no more than four and a half pounds per thousand, unless it is wrapped in whole tobacco leaf and does not have a cellulose acetate or other cigarette-style filter’.
(f) Tax Parity for Smokeless Tobacco-
(1) IN GENERAL- Section 5701(e) of the Internal Revenue Code of 1986 is amended--
(A) in paragraph (1), by striking ‘$1.51’ and inserting ‘$26.79’;
(B) in paragraph (2), by striking ‘50.33 cents’ and inserting ‘$10.72’; and
(C) by adding at the end the following:
‘(3) SMOKELESS TOBACCO SOLD IN DISCRETE SINGLE-USE UNITS- On discrete single-use units, $100.50 per each 1,000 single-use units.’.
(2) DISCRETE SINGLE-USE UNIT- Section 5702(m) of such Code is amended--
(A) in paragraph (1), by striking ‘or chewing tobacco’ and inserting ‘chewing tobacco, 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; and
(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 intended or expected to be consumed without being combusted; and
‘(B) is in the form of a lozenge, tablet, pill, pouch, dissolvable strip, or other discrete single-use or single-dose unit.’.
(3) OTHER TOBACCO PRODUCTS- Section 5701 of such Code is amended by adding at the end the following new subsection:
‘(i) Other Tobacco Products- Any product not otherwise described under this section that has been determined to be a tobacco product by the Food and Drug Administration through its authorities under the Family Smoking Prevention and 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.’.
(g) Clarifying Other Tobacco Tax Definitions-
(1) TOBACCO PRODUCT DEFINITION- Section 5702(c) of the Internal Revenue Code of 1986 is amended by inserting before the period the following: ‘, and any other product containing tobacco that is intended or expected to be consumed’.
(2) CIGARETTE PAPER DEFINITION- Section 5702(e) of such Code is amended by striking ‘except tobacco,’ and inserting ‘or cigar (other than roll-your-own tobacco)’.
(3) CIGARETTE TUBE DEFINITION- Section 5702(f) of such Code is amended by inserting before the period ‘or cigars’.
(4) IMPORTER DEFINITION- Section 5702(k) of such Code is amended by inserting ‘or any other tobacco product’ after ‘cigars or cigarettes’.
(h) Inflation Adjustment- Section 5701 of the Internal Revenue Code of 1986, as amended by subsection (f)(3), is amended by adding at the end the following new subsection:
‘(j) Inflation Adjustment- In the case of any calendar year after 2013, each amount set forth in this section shall be increased by an amount equal to--
‘(1) such amount, multiplied by
‘(2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 2012’ for ‘calendar year 1992’ in subparagraph (B) thereof.’.
(i) Floor Stocks Taxes-
(1) IMPOSITION OF TAX- On tobacco products manufactured in or imported into the United States which are removed before any tax increase date and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the excess of--
(A) the tax which would be imposed under section 5701 of the Internal Revenue Code of 1986 on the article if the article had been removed on such date, over
(B) the prior tax (if any) imposed under section 5701 of such Code on such article.
