The bill seeks to amend the Code of West Virginia by imposing an excise tax on e-cigarettes and heated tobacco products, thereby aligning them with existing tobacco product tax regulations. It updates key definitions, including the classification of "heated cigarette products" under the term "cigarette" for tax purposes and introduces a new definition for "heated tobacco product." The excise tax rate for heated tobacco products is set at 60 cents per 20 cigarettes starting July 1, 2025, while the tax on e-cigarette liquids remains at 7.5 cents per milliliter. The bill clarifies that e-cigarettes and e-cigarette liquids are not classified as heated tobacco products for tax purposes and outlines the responsibilities of wholesalers and retailers regarding tax payments and reporting.

Furthermore, the legislation enhances the Tax Commissioner's authority to enforce tax compliance by allowing them to examine witnesses under oath and requiring wholesale dealers of e-cigarette liquid to register with the Tax Commissioner before selling to retail dealers. It establishes that e-cigarette liquid without proof of tax payment is presumed to violate the law and mandates a surety bond of at least $1,000 from wholesalers, subjobbers, or retail dealers to ensure compliance. The bill also expands the enforcement powers of the Tax Commissioner, allowing designated employees to exercise lawful powers similar to public safety officials, and aligns criminal sanctions for violations related to e-cigarette liquid with those for tobacco products, ensuring consistent legal repercussions.

Statutes affected:
Introduced Version: 11-17-2, 11-17-3, 11-17-4b, 11-17-17