This bill amends Iowa's Code to create a taxation and regulatory framework for alternative nicotine and vapor products. It introduces a new ten percent tax on the wholesale sales price of these products, applicable at the point of distribution, manufacturing, or sale. The bill updates key definitions, including the introduction of "nicotine analog" and a more comprehensive definition of "vapor product." Revenue generated from this tax will be allocated to a newly established Iowa cancer research fund, which is specifically designated for cancer research initiatives in the state.

In addition to the tax provisions, the bill outlines management and oversight requirements for distributors, including maintaining accurate records and complying with licensing requirements. It establishes that the Iowa cancer research fund will be separate from the general fund and specifies the conditions for fund usage. The bill also mandates the Department of Health and Human Services to create an application process for researchers to access these funds, which will not be disbursed before July 1, 2026. Furthermore, it includes provisions for filing returns and remitting taxes related to tobacco, alternative nicotine, and vapor products, with specific deadlines and requirements for consumers and retailers, and sets an effective date for implementation on January 1, 2026.

Statutes affected:
Introduced: 453A.1, 453A.35, 453A.43A, 453A.44, 453A.46, 453A.43