Raises and aligns federal excise tax rates on a broad set of tobacco and nicotine products and creates a new federal excise tax on extracted or synthesized nicotine used in vaping products. It defines new product categories for tax purposes, sets rules for taxing inventory held when rates increase (a floor stocks tax), and assigns the Treasury Secretary and the HHS Secretary authority to issue guidance, regulations, and limited exceptions for implementation.

The changes are implemented on phased effective dates specified in the text and impose new compliance, reporting, and collection requirements on manufacturers, importers, distributors, and retailers; they also are likely to raise retail prices and federal revenue while affecting public-health and market dynamics for nicotine products.