The First District Court of Appeal upheld a ruling that hookah products are "loose tobacco suitable for smoking" and therefore taxable as Other Tobacco Products (OTP) under Florida law. The hookah products in question are made from tobacco leaves combined with a binding mixture.

In the 2-1 decision, the majority opinion claimed the statutory phrase is unambiguous while focusing on the common understanding of what "smoking" means, the physical state of the tobacco leaves in hookah products, and the ultimate consumption of nicotine during use.

The dissenting opinion took a more technical approach to defining "smoking." The dissent reasoned that for a product to qualify as "loose tobacco suitable for smoking," the tobacco itself must be ignited—a position consistent with precedent from other states. While acknowledging the Florida Legislature likely intended to include hookah products under the tax, the dissent argued that tax statutes must be narrowly construed, and courts should not expand statutory language to align with presumed legislative intent.

The full opinion is available here.

This ruling represents a significant shift in interpreting the relevant statutory language. Businesses operating in the tobacco product market should carefully review this decision to determine how it might affect their products and practices under current regulations.