Bill > HB2778

This bill introduces a comprehensive framework for taxing and regulating nicotine products and vapor products in Arizona, similar to existing regulations for tobacco products. The bill defines nicotine products and vapor products, imposes a 50% luxury tax on their wholesale price, and requires distributors to obtain licenses for selling these products. It mandates recordkeeping, reporting, and tax payment requirements for distributors and retailers of nicotine and vapor products. Notably, the bill allocates the tax revenues, with 40% going to the state general fund and 60% directed to the early childhood development and health fund, with specific allocations for early childhood education programs. The changes will apply to taxable periods beginning on or after December 31, 2025, and require a two-thirds vote in the legislature for enactment. The bill also provides the Department of Revenue with a one-year exemption from standard rulemaking requirements to facilitate implementation of these new regulations.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/83244