Vote Smart's Synopsis:

Vote to pass a bill that establishes an additional tax on alternative nicotine products in Iowa.

Highlights:

• Expands the definitions of “alternative nicotine product” and “vapor product” to include nicotine analogs (Sec. 1).

• Defines “nicotine analog” as a substance that has a chemical structure that is substantially similar to nicotine, and which has an effect on the central nervous system that is substantially similar to the effects of nicotine (Sec. 2).

• Specifies that the revenue from the additional tax on alternative nicotine and vapor products established by this Act goes to the health care trust fund in the office of the treasurer of state (Sec. 3).

• Appropriates the first $3 million of revenue from the additional tax established by this Act to the state board of regents for the purpose of pediatric cancer research beginning in fiscal year 2028, and each fiscal year thereafter (Sec. 3).

• Amends existing code regarding nicotine product manufacturing, distribution, and sale to include alternative nicotine or vapor products (Sec. 4-5).

• Establishes a tax on all alternative nicotine and vapor products and distributors in Iowa at the following rates (Sec. 6):

• Five cents per container of up to 20 alternative nicotine products, and a proportionate tax on containers in excess of 20 units; and

• Five cents per milliliter of a vapor solution containing nicotine or a nicotine analog, and a proportionate tax on any fractions of a milliliter.

• Establishes a tax at the same rates as those described above on the use or storage of alternative nicotine or vapor products if that tax has not been paid (Sec. 6).

• Specifies that the tax established by this Act is in addition to any other existing taxes (Sec. 6).

• Amends various existing codes regulating tobacco products to include alternative nicotine and vapor products (Sec. 7-13).

• Specifies that this Act takes effect January 1, 2027 (Sec. 14).

Full Bill Text