Bill > HB4456

This bill establishes the "Vapor Products Tax Code" in Oklahoma, creating a new excise tax of thirty percent (30%) on the wholesale cost of e-liquid, which is defined as any liquid intended for use in a vapor product that may contain nicotine or flavorings. This tax is to be paid by the manufacturer, distributor, or retailer who first receives the e-liquid in the state and remitted electronically to the Oklahoma Tax Commission, which is the state agency responsible for tax collection. The bill presumes that all e-liquid delivered to a retailer in Oklahoma is intended for use and consumption within the state, and it clarifies that the retail sale of e-liquids will continue to be subject to existing sales tax. The excise tax is considered a direct tax on the ultimate consumer, with any payment made by others being an advance collection. Businesses involved in the sale of e-liquids are required to retain invoices for at least three years and make them available for inspection by the Oklahoma Tax Commission. Revenue generated from this excise tax will be allocated differently depending on the fiscal year: fifty percent to a new "Vapor Products Regulation Revolving Fund" and fifty percent to the General Revenue Fund until June 30, 2028, after which seventy-five percent will go to the General Revenue Fund and twenty-five percent to the revolving fund. This revolving fund, managed by the Alcoholic Beverage Laws Enforcement Commission, will be used for regulating vapor products. The bill is set to become effective on January 1, 2027.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb4456&Session=2600