Bill > HB2488

This bill authorizes local governments (counties, cities, and towns) to impose a sales and use tax on nicotine vapor products, which are defined according to existing state law. The bill sets a maximum tax rate of either 10% of the wholesale price or five cents per milliliter, whichever is less. Local governments can create ordinances to administer and enforce this tax, including requiring registration of distributors, wholesalers, vendors, and retailers selling nicotine vapor products. These ordinances may include penalties for late payment (up to 10% per month), fraud (up to 50%), and interest charges (up to 0.75% per month). The bill allows localities to delegate tax administration to a single agency and provides a mechanism for businesses with unsold inventory to pay tax increases over a one-year period. Additionally, the bill directs the Department of Taxation to convene a work group with local government representatives to develop a standard form for implementing the new tax. The provisions of this bill will become effective on July 1, 2026, giving localities and businesses time to prepare for the new tax regulations.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/HB2488