Senate File 2480 amends the Iowa Code to enhance the regulation and taxation of alternative nicotine products and vapor products. The bill introduces new definitions, including "alternative nicotine product" and "nicotine analog," while clarifying the definition of "vapor product." It establishes a tax structure based on the quantity of these products and creates a health care trust fund to receive the generated revenue, with a portion specifically allocated for pediatric cancer research at the University of Iowa Stead Family Children's Hospital. Additionally, the bill outlines the responsibilities of distributors and manufacturers regarding compliance and record-keeping.

The legislation also mandates that common carriers transporting these products into Iowa file electronic reports detailing their shipments, while distributors must submit monthly returns on the quantity and wholesale sales price of the products. Consumers are required to file returns if taxes have not been paid, and provisions for refunds and credits on taxes for products shipped out of state or returned to manufacturers are included. Retailers making delivery sales of these products must remit applicable sales and use taxes, and the director is authorized to share information with other states regarding taxation. The act is set to take effect on January 1, 2027.

Statutes affected:
Introduced: 453A.1, 453A.35A, 453A.6, 453A.44, 453A.46, 453A.43
Reprinted: 453A.1, 453A.35A, 453A.6, 453A.44, 453A.46, 453A.43
Enrolled: 453A.1, 453A.35A, 453A.6, 453A.44, 453A.46, 453A.43