Texas Supreme Court Will Review Tobacco Tax Nicotine Dispute

The Texas Supreme Court decided on Friday to review whether nicotine isolate products are taxable tobacco goods under state law.

A lower court ruled that RJR Vapor Co.’s nicotine pouches and lozenges sold under the brand name VELO aren’t “tobacco products” or “tobacco substitutes” subject to Texas’s Cigars and Tobacco Products Tax. The appeals court reasoned that tobacco and nicotine aren’t synonymous.

• RJR said the nicotine isolate derived from the tobacco plants is similar to nicotine isolate that can be found in tomatoes, asking the high court to leave in place the appeals court opinion
• Other laws rely on the ...