This bill amends the Code of West Virginia to introduce an excise tax on heated tobacco products and clarify the tax status of e-cigarettes. It defines "heated tobacco product" as those that produce inhalable aerosols by heating tobacco without combustion, while explicitly stating that e-cigarettes and e-cigarette liquids are not considered heated tobacco products for tax purposes. A new excise tax rate of 60 cents on heated tobacco products will take effect on July 1, 2025, while the existing tax rate of 7.5 cents per milliliter for e-cigarette liquids remains unchanged. Additionally, the bill increases the excise tax on cigarettes to $1.20 per twenty cigarettes, effective July 1, 2016, and outlines the responsibilities of wholesalers and retailers regarding tax payments and reporting.

The legislation enhances the Tax Commissioner's authority to enforce compliance with tax regulations, allowing for the examination of witnesses under oath to determine tax liabilities. It mandates that wholesale dealers of e-cigarette liquid register with the Tax Commissioner and maintain a business registration certificate, ensuring that only tax-paid e-cigarette liquid is sold to approved retailers. The bill also establishes presumptions regarding the possession of untaxed e-cigarette liquid and requires certain parties to file a surety bond of at least $1,000. Furthermore, it grants enforcement powers to designated employees or agents of the Tax Commissioner and requires assistance from the state department of public safety and local law enforcement in enforcing these provisions. The bill ensures that the same criminal sanctions applicable to traditional tobacco products also apply to e-cigarette products.

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