This bill aims to modernize Arizona's statutes by expanding the definition of regulated products to include nicotine products and vapor products alongside tobacco products. It ensures that the same regulations, including licensing and tax obligations, apply to these new categories. For example, individuals are prohibited from holding or storing nicotine products or vapor products for sale without notifying the department, and all products must comply with existing laws governing tobacco products. Additionally, the bill introduces a new tax structure that imposes a fifty percent tax on the wholesale price of nicotine products and vapor products, aligning their taxation with that of tobacco products. It also mandates that distributors of nicotine products and vapor products source these items only from licensed manufacturers or importers. The bill further exempts the department of revenue from certain rulemaking requirements for one year post-enactment and specifies that the new regulations will take effect for taxable periods beginning on or after December 31, 2025.

Statutes affected:
Introduced Version: 42-1102, 42-1124, 42-1125, 42-2003, 42-3001, 42-3008, 42-3051, 42-3052, 42-3053, 42-3107, 42-3401, 42-3403, 42-3404, 42-3405, 42-3406, 42-3501, 42-3502, 42-3504, 13-3711, 36-798.06, 42-3461, 44-7111, 41-1092, 42-1251, 42-2057, 43-413, 42-1129, 42-1105, 42-1123, 42-5005, 42-5014, 43-302, 4-101, 42-2002, 42-1101, 42-12006, 43-1083.03, 43-1164.04, 41-1512, 41-1517, 41-1519, 43-1082, 43-1165, 32-1164, 12-821.01, 36-2806, 5-401, 42-6002, 9-500.39, 11-269.17, 42-5029, 43-221, 42-2001, 42-1122, 46-291, 42-5031, 44-7101, 42-1103.02, 42-1125.01, 43-419, 42-5001, 42-5032.02, 42-5076, 4-205.10, 42-3451, 35-146, 35-147, 42-3302, 42-1105.02, 42-3102, 8-1181, 42-1127, 89-92, 13-904, 41-1092.11, 42-3454, 42-3462, 42-3460, 42-3402