nicotine

Although the products don't contain tobacco, justices ruled VELO pouches are made of a tobacco substitute, which subjects them to state taxes overseen by the Texas Comptroller. Sellers pay those taxes up front, but they can be passed onto consumers.

RJR Vapor told Texas Supreme Court justices Wednesday that while its nicotine pouches and lozenges are derived from tobacco, they're not tobacco products and shouldn't be taxed as such. The state comptroller says that rationale would make the products more accessible to minors and cost Texas millions in tax revenue.