This bill amends the Tobacco Products Tax Act by modifying the tax rates applicable to electronic nicotine delivery systems. Specifically, it changes the tax on electronic nicotine delivery systems containing more than three milliliters of consumable material from ten percent to forty percent of either the purchase price paid by the first owner or the price at which the first owner sells the item. Additionally, the bill removes the previous tax structure for electronic nicotine delivery systems containing three milliliters or less of consumable material, which was set at five cents per milliliter.

The bill also clarifies the tax imposition on retail dealers for electronic nicotine delivery systems that have not had tax paid on them, specifying that the tax is due when the dealer brings the product into the state, manufactures it, or sells it to consumers. Furthermore, the tax on other tobacco products remains at twenty percent of the purchase price or the selling price by the first owner. The original section of the law being amended is repealed as part of this legislative update.

Statutes affected:
Introduced: 77-4008