Section 5Sec./Art. 5

Section 147 of the National Internal Revenue Code of 1997, as amended, is hereby further amended to read as follows:

"Sec. 147. Definition of Terms. When used herein and in statements or official forms prescribed hereunder, the following terms shall have the meaning indicated:

"(a) Cigars mean all rolls of tobacco or any substitute thereof, wrapped in leaf tobacco that are consumed via combustion of the tobacco.

"(b) Cigarettes mean all rolls of finely-cut leaf tobacco, or any substitute therefor, wrapped in paper or in any other material that are consumed via combustion of the tobacco.

"(c) Wholesale price shall mean the amount of money or price paid for cigars or cigarettes purchased for the purpose of resale, regardless of quantity.

"(d) Retail price shall mean the amount of money or price which an ultimate consumer or end-user pays for cigars or cigarettes purchased.

"(e) Heated tobacco products refer to tobacco products that may be consumed through heating tobacco, either electrically or through other means sufficiently to release an aerosol that can be inhaled, without burning or any combustion of the tobacco. Heated tobacco products include liquid solutions and gels that are part of the product and are heated to generate an aerosol.

"(f) Vapor products shall mean any liquid solution or gel which contains nicotine that transforms into an aerosol without combustion through the employment of a mechanical heating element, battery or circuit that can be used to heat such solution or gel, and includes but is not limited to, a cartridge, a tank, and the device without a cartridge or tank. It is commonly known as e-liquids for e-cigarettes. It also includes electronic nicotine and non-nicotine delivery systems (ENDS/ENNDS) which are combinations of non-tobacco containing e-liquids or refills which contain up to sixty-five milligrams per milliliter (65mg/ml) of nicotine in the e-liquid or refill and an electronic delivery device to produce an aerosol, mist or vapor that users inhale by mimicking the act of smoking."