Republican congressman Darrell Issa of San Diego County and Democrat Don Davis of North Carolina have introduced the Hookah Clarification Act of 2024 to equally tax hookah waterpipe tobacco and conventional pipe tobacco.
Issa noted that hookah is a cultural tradition that is found in many communities throughout Southern California, while Davis’ state is a major tobacco producer.
The two congressmen are introducing the act to “end longstanding confusion about the existing tax classification of hookah and establish clarity for the future,” Issa said.
“This bill is an important first step toward equitable tax treatment for the American hookah industry, and I believe it will find significant support,” he said.
The legislation would create a subcategory for waterpipe tobacco, separating it from pipe tobacco to ensure it is classified appropriately. In addition, a tax of $2.8311 per pound would be assessed on both pipe and waterpipe tobacco manufactured in or imported to the U.S.
The bill also establishes the first legal definitions for both hookah and waterpipe tobacco – a step toward modernizing outdated regulations.
“Tobacco production plays a crucial role in eastern North Carolina’s economy, and Congress must implement fair taxation for all tobacco products,” Davis said.
The schedule for hearings on the proposed bill is still to be determined, according to Jonathan Wilcox, communications director at Issa’s office.
