Rhode Island Tax Division Announces 80 Percent Tax Rate for Other Tobacco Products

The Rhode Island Division of Taxation published an advisory document announcing the expansion of the definition of Other Tobacco Products (OTP) effective Oct. 1. The definition includes certain products containing nicotine, whether natural or artificial, and subject them to an 80 percent tax rate on the wholesale cost. The advisory also reminds retailers and distributors of the requirement to file floor stock tax returns and pay any applicable tax on existing nicotine product inventory by Oct. 16. [R.I. Div. of Tax’n, ADV 2025-19, 09/19/25]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.