This bill proposes the establishment of a new article in the West Virginia Code, specifically the "Electronic Cigarette Excise Tax Act," which introduces an excise tax on electronic cigarette products based on their nicotine content. The tax is set at three cents per milligram of nicotine, aligning it with the existing cigarette excise tax of $1.20 per pack. The bill also includes provisions for fallback valuation in cases where product labeling is absent or unreliable, with specific presumptions for closed and open system electronic cigarettes. Additionally, the bill repeals the previous section 11-17-4b related to the levy of tax on e-cigarette liquid.

The revenues generated from this new excise tax will be dedicated to a special revenue fund for the Public Employees Insurance Agency (PEIA), with the aim of reducing or stabilizing employee health insurance premium costs. The bill mandates that these funds cannot replace employer contributions and requires the PEIA to report annually on the revenues received and their impact on employee premium rates. The effective date for this legislation is set for July 1, 2026.

Statutes affected:
Introduced Version: 11-17A-1, 11-17A-2, 11-17A-3, 11-17A-4, 11-17A-5, 11-17-4b