Section 1 Short title
This Act may be cited as the “Hookah Clarification Act of 2025”.
Hookah Clarification Act of 2025
A BILL
To amend the Internal Revenue Code of 1986 to establish a tax for waterpipe tobacco, and for other purposes.
Sec. 2 Waterpipe tobacco tax
In general— Section 5701(f) of the Internal Revenue Code of 1986 is amended to read as follows:
“(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).”
Conforming amendments— Section 5702 of such Code is amended by adding at the end the following new subsections:
“(q) Waterpipe tobacco—The term “waterpipe tobacco” means a tobacco product consumed or intended to be consumed in a waterpipe, including hookah tobacco, shisha, maassel, narghile, and argileh.”
Effective date— The amendments made by this section shall apply to tobacco manufactured or imported after the date of the enactment of this Act.