This bill establishes a new tax structure for certain nicotine and nonnicotine products, specifically targeting e-liquids, nicotine pouches, and vapor cartridges. It imposes a tax of $1.15 per vapor cartridge and 6.8 cents per nicotine pouch sold at retail. Additionally, a 15% tax is applied to the retail sales price of vapor products that require e-liquids, as well as to e-liquids sold separately from vapor cartridges. The revenue generated from these taxes will be collected by the Department of Revenue and is in addition to any existing taxes.

The bill also creates the Iowa cancer research fund, which will receive the revenues generated from the new taxes. Funds will be allocated exclusively for cancer research purposes and cannot be disbursed before July 1, 2026. The Department of Health and Human Services is tasked with developing an application process for researchers to access these funds. The bill takes effect immediately upon enactment, allowing for the adoption of emergency rules to facilitate its implementation, and it will apply to retail sales of the specified products starting July 1, 2025.

Statutes affected:
Introduced: 453A.35