House Bill No. introduced by M. Caferro aims to revise the taxation framework for vapor products and update the definition of "tobacco products" in Montana law. The bill introduces a new definition for "vapor products," which are described as non-combustible products that may contain nicotine and utilize various electronic or mechanical means to produce vapor from a solution. Additionally, the bill specifies that the term "tobacco product" now includes vapor products alongside traditional tobacco items. The tax structure is also amended to impose a 20% tax on the wholesale price of vapor products containing nicotine, while maintaining existing tax rates for other tobacco products.

The bill amends Sections 16-11-102 and 16-11-111 of the Montana Code Annotated, with significant changes including the addition of definitions for vapor products and the specific tax rate applicable to them. It also establishes that the new tax provisions will apply to tobacco products sold by wholesalers after June 30, 2025. This legislative effort reflects a growing recognition of vapor products in the tobacco market and aims to regulate their sale and taxation similarly to traditional tobacco products.

Statutes affected:
LC Text: 16-11-102
HB0910_1(1): 16-11-102
HB0910_1(2): 16-11-102
HB0910_1(3): 16-11-102
HB0910_1(4): 16-11-102
HB0910_1: 16-11-102
HB0910_2(1): 16-11-102, 16-11-111
HB0910_2(10): 16-11-102
HB0910_2(11): 16-11-102
HB0910_2(2): 16-11-102, 16-11-111
HB0910_2(3): 16-11-102, 16-11-111
HB0910_2(4): 16-11-102
HB0910_2(5): 16-11-102
HB0910_2(6): 16-11-102
HB0910_2(7): 16-11-102
HB0910_2(8): 16-11-102
HB0910_2(9): 16-11-102
HB0910_2: 16-11-102, 16-11-111