Bill > SSB1137

Introduced Session

This bill imposes a tax on certain products containing nicotine or nonnicotine substances. For a vapor cartridge sold at retail, the bill imposes a $1.15 tax per cartridge. For a nicotine pouch sold at retail, the bill imposes a 6.8 cent tax per pouch. For a vapor product requiring the use of e-liquids, the bill imposes a tax of 15 percent upon the retail sales price. For e-liquids sold separately from a vapor cartridge, the bill imposes a tax of 15 percent upon the retail sales prices. S.F. _____ The taxes imposed pursuant to the bill are collected by the department of revenue and are in addition to any other taxes imposed by law, including the state sales tax. The revenue generated by the bill is credited to the new Iowa cancer research fund (fund), under the authority of the department of health and human services (HHS). The bill specifies moneys in the fund shall not be disbursed prior to July 1, 2026, and shall only be appropriated for purposes related to supporting and funding cancer research in the state. The bill requires HHS to develop an application process and guidelines for cancer researchers to receive moneys from the fund. The fund is not subject to reversion and moneys or earnings attributable to the fund are credited to the fund. The bill defines “e-liquid”, “nicotine pouch”, “retail sales price”, and “vapor cartridge”. The bill takes effect upon enactment in order for the department of revenue to adopt emergency rules to implement the bill. The bill applies to the retail sales of e-liquids, nicotine pouches, and vapor cartridges made on or after July 1, 2025.

Committee Categories

No sponsors listed

Other Sponsors (1)

Committee report approving bill, renumbered as SF 475. (on 02/26/2025)

Official Document