Alabama Legislation Advances for Heated Tobacco Products

A bill in Alabama aiming to create distinct tax categories for heated tobacco products is nearing its final approval in the Legislature. Supporters argue that its passage could position Alabama as a leader in tobacco harm reduction and improve tax policies related to health.

Known as HB357, this legislation recently moved forward from the Alabama House and is currently under consideration in the Senate. Just this week, it advanced through the state Senate’s General Fund Committee on Finance and Taxation, proposing a separate tax bracket for heated tobacco products.

Heated tobacco products, unlike traditional cigarettes, operate by heating tobacco rather than burning it, which cuts down on harmful chemicals usually produced through combustion. Proponents see the bill as a way to support public health by encouraging adult smokers to switch to safer alternatives.

State Assemblyman Lauranda Hollis, a Democrat from Birmingham and an advocate for tobacco harm reduction, has consistently backed this bill in various sessions. “It’s evident that Alabama lawmakers need to focus on helping smokers quit,” she remarked. “This practical approach not only enhances public health but also has the potential to save the state billions in healthcare and productivity costs as more individuals transition from smoking.”

Hollis emphasizes that her proposals aren’t purely health-related; they also reflect smart tax policy. A risk-based taxation system means that different products are taxed in line with their health implications.

Support for this initiative includes perspectives like that of David Williams, president of the Taxpayer Protection Alliance (TPA), who recently shared a poignant personal experience. “I saw the harm that combustible cigarettes can do. My father smoked three packs daily for over 20 years, which took a toll on him and our family. He had triple bypass surgery at 63.”

The U.S. Food and Drug Administration (FDA) has acknowledged that heated tobacco products might pose lower risks and has granted modified Risk Tobacco Products (MRTP) status to some brands. The proposed HB 357 aligns with federal guidelines regarding the health risks associated with various tobacco products.

Mississippi has already implemented similar tax frameworks, setting a precedent for Alabama to consider. The bill is now awaiting further consideration by the full Senate.

Today marks the 26th day of the 2025 Legislative Conference, leaving just three days for any final decisions.