The real opportunity, in our view, is tax modernization. Bring new products into the tax code. Redefine tax classifications to distinguish combustible from smoke-free products. And provide reduced tax rates for those products that the FDA determines warrant Modified Risk Tobacco Product claims under the exacting standards it applies. The Modified Risk Tobacco Product process is intended to permit truthful and accurate communication of relative risk information about a tobacco product to adult tobacco consumers.
Consistent with this approach, in 2019 and 2020, we advocated for a modernized tax code New Mexico, Washington, Utah, and Colorado. Each of these states now provides for a tax differential for products the FDA authorizes as a Modified Risk Tobacco Product. As of April 1, 2021, eight states have enacted legislation providing for tax differentiation.