This bill amends Section 1355 of Title 68 of the Oklahoma Statutes to include electronic cigarettes and vapor products in the list of items exempt from sales tax. It defines these products and establishes a new excise tax specifically for them, which will be paid in lieu of any other tax. The excise tax for closed system products is set at fifteen cents per milliliter of e-liquid plus one dollar per cartridge, while open system products will incur a tax of fifteen percent of the sales price. Retailers are required to file a monthly report to the Oklahoma Tax Commission detailing their sales and the taxes due.

Additionally, the bill mandates that the excise tax be paid by retailers on the first day of each month, with reports due by the twentieth day of the month. If the tax is not paid on time, it will be considered delinquent and subject to interest charges. The revenue generated from this tax will be directed to the General Revenue Fund, and the bill is set to take effect on November 1, 2026.

Statutes affected:
Introduced: 68-1355