This bill aims to amend the Code of West Virginia regarding the taxation of e-cigarettes, vapor products, and their associated liquids and accessories. It introduces new definitions for terms such as "e-cigarette," "closed vapor cartridge," "open vaping system," and "vapor products," while also updating the tax rates. Specifically, an excise tax of 50% will be imposed on the taxable sale price of e-cigarettes and all electronic vaping devices, as well as on e-cigarette liquids and mixing kits. The bill also establishes that wholesalers and dealers must purchase e-cigarette liquids only from approved sellers and mandates that all sales must be documented through a serially numbered invoice.

Additionally, the bill increases penalties for non-compliance, raising the fine for failing to file required reports from $25 to $500 per month. It grants the Tax Commissioner the authority to inspect records and enforce compliance, including the ability to examine witnesses under oath. Furthermore, the bill allows the Tax Commissioner to establish an application and renewal fee for distributors, not exceeding $500, to cover administrative costs associated with licensing. Overall, the legislation seeks to enhance regulation and enforcement of e-cigarette taxation in West Virginia.

Statutes affected:
Introduced Version: 11-17-4b