Bill
Bill > SF475
IA SF475
A bill for an act imposing a tax on certain products containing nicotine or nonnicotine substances, creating the Iowa cancer research fund, and including effective date provisions.(Formerly SSB 1137; See SF 638.)
summary
Introduced
03/03/2025
03/03/2025
In Committee
03/04/2025
03/04/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
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. 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 January 1, 2026.
AI Summary
This bill imposes new taxes on various nicotine and vapor products in Iowa, creating a dedicated funding mechanism for cancer research. Specifically, the bill establishes a tax of $1.15 per vapor cartridge, 6.8 cents per nicotine pouch, and a 15% tax on the retail sales price of vapor products requiring e-liquids and e-liquids sold separately. These taxes are in addition to existing taxes and will be collected by the department of revenue. The revenues generated from these new taxes will be credited to a newly created Iowa Cancer Research Fund, which will be managed by the Department of Health and Human Services (HHS). The fund is designed to support cancer research in the state, with funds not to be disbursed until July 1, 2026. HHS will be responsible for developing an application process and guidelines for cancer researchers to access these funds. The bill provides clear definitions for terms like "e-liquid," "nicotine pouch," and "vapor cartridge" to ensure precise implementation. The legislation is set to take effect on January 1, 2026, giving stakeholders time to prepare for the new tax structure and research funding mechanism.
Committee Categories
Budget and Finance
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Health And Human Services (S)
Last Action
Committee report approving bill, renumbered as SF 638. S.J. 860. (on 04/22/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF475 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF475.html |
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