Bill > HB4032

This bill establishes an excise tax on alternative nicotine products and vapor products, defining these terms to include non-combustible nicotine products intended for consumption and devices used to deliver aerosolized substances, respectively, while excluding tobacco products and FDA-authorized drugs. The tax is set at 50% of the retail price and the revenue generated will be distributed among several funds: 21% to the state general fund, 49% to the early childhood development and health fund (with specific allocations for quality and access to early childhood education programs), 5% to the ninth grade on-track grant program fund, 1% to the smoke-free Arizona fund, 19% to the out-of-school time program fund, and 5% to the early intervention support fund, which will support programs for infants and toddlers with developmental delays. The bill also makes technical amendments to existing laws regarding the early childhood development and health fund, the ninth grade on-track grant program, the smoke-free Arizona act, and establishes new funds for out-of-school time programs and early intervention support, with the Department of Revenue being exempt from certain rulemaking requirements for one year.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/85546