South OC Times

Congressman Darrell Issa from California and Congressman Don Davis from North Carolina have introduced the Hookah Clarification Act. This bipartisan bill aims to address and clarify the tax classification of hookah products under the Internal Revenue Code.

Issa stated, "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." He emphasized that this legislation is a crucial step towards fair tax treatment for the American hookah industry and anticipates significant support.

The proposed legislation seeks to amend section 5701 (f) of the Internal Revenue Code by creating a distinct subcategory for Waterpipe Tobacco. This would separate it from pipe tobacco, ensuring appropriate classification. Furthermore, it introduces statutory definitions for both hookah and Waterpipe Tobacco, marking progress in updating outdated regulations.

Congressman Don Davis highlighted the importance of this bill for his region's economy: "Tobacco production plays a crucial role in eastern North Carolina’s economy, and Congress must implement fair taxation for all tobacco products."

The text of the bill is available for public viewing.