This bill establishes a new tax on certain nicotine and nonnicotine products, including vapor cartridges and nicotine pouches, and creates the Iowa cancer research fund. Specifically, 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 and 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 be funded by the revenues from the new taxes. The fund is established under the Department of Health and Human Services and is designated solely for supporting and funding cancer research in Iowa. Funds will not be disbursed before July 1, 2026, and the Department of Health and Human Services is tasked with developing an application process for researchers to access these funds. The bill takes effect on January 1, 2026.

Statutes affected:
Introduced: 453A.35