The bill introduces significant amendments to the taxation and regulation of alternative nicotine and vapor products in Iowa, while also establishing the Iowa cancer research fund. It updates key definitions, including the introduction of "nicotine analog" and a more comprehensive definition of "vapor product." A new tax of ten percent on the wholesale sales price of these products is imposed, applicable at the point of distribution, manufacturing, or sale within the state. The revenue generated from this tax will be allocated to the Iowa cancer research fund, which is dedicated to supporting cancer research initiatives in Iowa.

Additionally, the bill outlines the responsibilities of distributors and manufacturers regarding record-keeping and reporting to ensure compliance with the new regulations. It mandates that distributors report the quantity and wholesale sales price of products shipped to retailers, and requires consumers to file returns if applicable taxes have not been paid. Refunds or credits for taxes paid on products shipped out of state or returned to manufacturers are also specified. The funds collected will be separate from the general fund and will not be disbursed until July 1, 2027, with the Department of Health and Human Services responsible for developing guidelines for fund allocation. The provisions of this bill are set to take effect on January 1, 2027.

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