House Bill No. introduced by M. Caferro aims to revise the taxation framework for vapor products in Montana by providing a clear definition of "vapor products" and updating the existing definitions of "tobacco products." The bill amends Section 16-11-102 of the Montana Code Annotated (MCA) to include vapor products in the definition of tobacco products, which now explicitly states that it encompasses cigarettes and all other products intended for human consumption or use, including vapor products. Additionally, the bill introduces a new definition for vapor products, describing them as noncombustible products that may contain nicotine and utilize various electronic means to produce vapor from a solution or substance.

Furthermore, the bill amends Section 16-11-111, establishing a tax structure for vapor products that contain nicotine, which will be set at 20% of the wholesale price. This aligns with the existing tax rates for other tobacco products, such as a 50% tax on the wholesale price of most tobacco products, excluding cigarettes, premium cigars, and moist snuff. The legislation also specifies that the new tax provisions will apply to tobacco products sold by wholesalers after June 30, 2025. Overall, this bill seeks to modernize the regulation and taxation of tobacco and vapor products in Montana, reflecting the evolving market and public health considerations.

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(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