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 within the state. The legislation expands definitions to include "nicotine analog" and provides a comprehensive definition of "vapor product." The revenue generated from this tax will be allocated to the newly established Iowa cancer research fund, which is dedicated to supporting cancer research in Iowa and will not disburse funds before July 1, 2026.

Additionally, the bill updates licensing requirements for distributors and subjobbers of alternative nicotine and vapor products to ensure compliance with the new tax regulations. It mandates that consumers acquiring these products must file a return and remit any unpaid taxes, with provisions for refunds and credits for taxes previously paid on products shipped out of state or returned. The Department of Health and Human Services is tasked with developing an application process for researchers seeking funding from the Iowa cancer research fund. The bill is set to take effect on January 1, 2026, and aims to enhance public health initiatives while generating funding for cancer research through the regulation of these products.

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