Issa Introduces Bipartisan Bill to Reform Hookah Tax Classification

WASHINGTON – Congressman Darrell Issa (CA-48) and Congressman Don Davis (NC-01) today introduced the Hookah Clarification Act, bipartisan legislation to correct and clarify the tax classification of hookah products under the Internal Revenue Code.

“Hookah is a valued cultural tradition that connects so many communities, especially throughout Southern California. That’s why I’m introducing the Hookah Clarification Act with Congressman Davis so we can end longstanding confusion about the existing tax classification of hookah and establish clarity for the future,” said Rep. Issa. “This bill is an important first step toward equitable tax treatment for the American hookah industry, and I believe it will find significant support.”

The legislation amends section 5701 (f) of the Internal Revenue Code to create a subcategory for Waterpipe Tobacco, separating it from pipe tobacco to ensure it is classified appropriately. Additionally, the bill establishes the first statutory definitions for both hookah and Waterpipe Tobacco – a significant step toward modernizing outdated regulations.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,” said Congressman Don Davis.

Read the text of the bill here.