This bill amends various sections of the Iowa Code to enhance the administration and taxation of tobacco-related products, specifically incorporating alternative nicotine products and vapor products. A new definition of "nicotine" is introduced, which includes all forms of the chemical and its analogs. The definition of "tobacco products" is also modified to encompass alternative nicotine and vapor products, with a stipulation that packages of alternative nicotine products cannot exceed twenty separately consumable items. Additionally, the tax rate on cigarettes is increased from six cents to fourteen cents per cigarette, and a mechanism for adjusting tax rates based on inflation is established, effective January 1, 2029.

Moreover, the bill imposes a fifty percent tax on the wholesale sales price of tobacco products, alternative nicotine products, and vapor products, with provisions for recalculating the tax if it falls below a specified threshold. Taxes on these products must be collected at the time of sale or distribution. The legislation also mandates common carriers to provide access to transportation records and requires electronic reporting of shipments. Revenues generated from these taxes will be credited to the health care trust fund, ensuring that the funds are allocated for designated health care purposes. The bill includes various amendments to ensure that the definitions and regulations surrounding the sale, storage, and taxation of these products are comprehensive and reflective of the evolving market.

Statutes affected:
Introduced: 453A.1, 453A.42, 453A.6, 453A.39, 331.653, 331.756, 453A.32, 453A.33, 453A.40, 453A.13, 453A.48, 453A.51