Reynolds subsidiary to receive over $16,000 tax refund as court rules oral nicotine contains no toba

  A Texas court confirmed that RJR Vapor Co. is entitled to a tax refund of over $16,000. The Texas appellate court ruled that oral nicotine products do not contain tobacco and should be refunded.

According to Bloomberg Tax on December 14, a Texas appellate court confirmed that Reynolds Tobacco subsidiary RJR Vapor is entitled to a tax refund of over $16,000 because the company's oral nicotine products do not contain tobacco or tobacco substitutes.

The judge ruled that "tobacco" and "nicotine" are not synonymous. In this appellate case, Judge Gisela D. Triana of the Texas Third District Court wrote, "Nicotine is a chemical found in tobacco, but after the extraction process is complete, there are no parts of the tobacco plant left in the nicotine alkaloid."