A bill that would create a separate tax category for heated tobacco products (HTPs) is just one step away from final passage in the Alabama Legislature. Supporters say its passage would position the state at the forefront of both tobacco harm-reduction efforts and pro-health tax policy alike.

HB357 recently passed the Alabama House and is now under consideration upstairs in the Senate. The bill, which advanced out of the state Senate Finance and Taxation General Fund Committee earlier this week, would establish a separate tax category for heated tobacco products. 

Unlike traditional cigarettes, HTPs heat tobacco without burning it, significantly reducing exposure to the harmful chemicals associated with combustion. Supporters say the bill is a public health measure aimed at encouraging adult smokers to transition to less harmful alternatives.

RELATED: State Rep. Rolanda Hollis: Update Alabama’s tax code to improve public health

State Rep. Rolanda Hollis (D-Birmingham), a vocal supporter of tobacco harm reduction, has carried the bill across multiple sessions.

“It is clear that Alabama lawmakers should prioritize helping our state’s smokers to quit,” she said. “This commonsense approach would not only improve public health but could also save Alabama billions of dollars in healthcare and productivity costs as more people successfully transition away from smoking.” 

Her legislation is not just about health; it is also a matter of sound tax policy, Hollis argues. Risk-based taxation ensures that products with differing health profiles are taxed accordingly.

RELATED: David Williams: Smart tax policy would incentivize Alabamians who smoke to quit

Supporting this judicious approach, David Williams, president of the Taxpayers Protection Alliance (TPA), recently shared his personal story.

“I saw firsthand the devastation of combustible cigarettes. My father smoked three and a half packs of cigarettes a day for more than 20 years. It was an awful life for him and the entire family. He had triple bypass surgery at age 40 and died at age 63. I am convinced that his life span could have been greatly increased if he had access to HTPs and other options.”

The U.S. Food and Drug Administration (FDA) has acknowledged the reduced-risk potential of HTPs, granting Modified Risk Tobacco Product (MRTP) status to certain brands. HB 357 mirrors this scientific approach by proposing a tax system that aligns with federal guidance and the relative health risks of tobacco products.

States like Mississippi have already adopted similar tax models, offering a precedent for Alabama to follow. The bill now awaits further action by the full Senate.

Today was day 26 of the 2025 legislative session. Only three days remain.