H.R. 4404

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to establish a tax for waterpipe tobacco, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · July 15, 2025 · Sponsor: Mr. Issa · Committee: Committee on Ways and Means

Table of contents

• H.R. 4404
  • SEC. 1. Short title
  • SEC. 2. Waterpipe tobacco tax

SEC. 1. Short title

• This Act may be cited as the Hookah Clarification Act of 2025.

SEC. 2. Waterpipe tobacco tax

• (a) In general
  • of the Internal Revenue Code of 1986 is amended to read as follows: Section 5701(f)
    • (f) Pipe tobacco
      • (1) In general
        • On pipe tobacco, manufactured in or imported into the United States, which is not waterpipe tobacco, there shall be imposed a tax of $2.8311 per pound (and a proportionate tax at the like rate on all fractional parts of a pound).
      • (2) Waterpipe tobacco
        • On waterpipe tobacco, manufactured in or imported into the United States, there shall be imposed a tax of $0.5662 per pound and (a proportionate tax at the like rate on all fractional parts of a pound).
• (b) Conforming amendments
  • (q) Waterpipe tobacco
    • The term means a tobacco product consumed or intended to be consumed in a waterpipe, including hookah tobacco, shisha, maassel, narghile, and argileh. waterpipe tobacco
  • Section 5702 of such Code is amended by adding at the end the following new subsections:
• (c) Effective date
  • The amendments made by this section shall apply to tobacco manufactured or imported after the date of the enactment of this Act.