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Senate
File
475
-
Introduced
SENATE
FILE
475
BY
COMMITTEE
ON
HEALTH
AND
HUMAN
SERVICES
(SUCCESSOR
TO
SSB
1137)
A
BILL
FOR
An
Act
imposing
a
tax
on
certain
products
containing
nicotine
1
or
nonnicotine
substances,
creating
the
Iowa
cancer
research
2
fund,
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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475
Section
1.
NEW
SECTION
.
453A.6A
Additional
taxes
imposed.
1
1.
For
purposes
of
this
section:
2
a.
“E-liquid”
means
a
liquid
solution
containing
nicotine,
3
nicotine
analog,
a
nonnicotine
substance,
or
other
material
4
consumed
during
the
process
of
vaporization
or
aerosolization
5
and
is
intended
to
be
used
with
or
in
a
vapor
product.
6
“E-liquid”
does
not
include
any
product
regulated
as
a
drug
or
7
device
by
the
United
States
department
of
agriculture
under
8
chapter
V
of
the
federal
Food,
Drug,
and
Cosmetic
Act.
9
b.
“Nicotine
pouch”
means
a
smokeless
preportioned
pouch
10
containing
nicotine
designed
to
be
placed
between
the
lip
and
11
the
gum
where
the
nicotine
is
absorbed
into
the
bloodstream.
A
12
“nicotine
pouch”
is
not
a
tobacco
product.
13
c.
“Retail
sales
price”
means
the
same
as
“sales
price”
as
14
defined
in
section
423.1.
15
d.
“Vapor
cartridge”
means
a
prefilled
disposable
cartridge
16
or
pod
containing
nicotine,
nicotine
analog,
a
nonnicotine
17
substance,
or
other
material
consumed
during
the
process
of
18
vaporization
or
aerosolization
and
is
intended
to
be
used
with
19
or
in
a
vapor
product.
“Vapor
cartridge”
does
not
include
any
20
product
regulated
as
a
drug
or
device
by
the
United
States
21
department
of
agriculture
under
chapter
V
of
the
federal
Food,
22
Drug,
and
Cosmetic
Act.
23
2.
a.
The
following
taxes
shall
be
imposed,
collected,
and
24
paid
to
the
department
on
the
following
products
sold
at
retail
25
in
the
following
amounts:
26
(1)
For
a
vapor
cartridge,
one
dollar
and
fifteen
cents
per
27
cartridge.
28
(2)
For
a
nicotine
pouch,
six
and
eight-tenths
cents
per
29
pouch.
30
b.
The
following
taxes
shall
be
imposed
and
collected,
and
31
paid
to
the
department
in
the
following
amounts
upon
the
retail
32
sales
price:
33
(1)
For
a
vapor
product
requiring
the
use
of
e-liquids,
34
fifteen
percent.
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(2)
For
e-liquids
sold
separately
from
a
vapor
cartridge,
1
fifteen
percent.
2
3.
The
taxes
imposed
pursuant
to
this
section
are
in
3
addition
to
any
other
taxes
imposed
by
law.
4
Sec.
2.
Section
453A.35,
subsection
1,
paragraph
a,
Code
5
2025,
is
amended
to
read
as
follows:
6
a.
With
the
exception
of
revenues
credited
to
the
health
7
care
trust
fund
pursuant
to
paragraph
“b”
and
revenues
credited
8
to
the
Iowa
cancer
research
fund
pursuant
to
paragraph
“c”
,
9
the
proceeds
derived
from
the
sale
of
stamps
and
the
payment
10
of
fees
and
penalties
provided
for
under
this
chapter
,
and
the
11
permit
fees
received
from
all
permits
issued
by
the
department,
12
shall
be
credited
to
the
general
fund
of
the
state.
13
Sec.
3.
Section
453A.35,
subsection
1,
Code
2025,
is
amended
14
by
adding
the
following
new
paragraph:
15
NEW
PARAGRAPH
.
c.
The
revenues
generated
from
the
16
additional
tax
in
section
453A.6A
shall
be
credited
to
the
Iowa
17
cancer
research
fund
created
in
section
453A.35B.
18
Sec.
4.
NEW
SECTION
.
453A.35B
Iowa
cancer
research
fund.
19
1.
An
Iowa
cancer
research
fund
is
created
in
the
office
of
20
the
treasurer
of
state
under
the
authority
of
the
department
of
21
health
and
human
services.
The
fund
consists
of
the
revenues
22
generated
from
the
additional
tax
in
section
453A.6A.
Moneys
23
in
the
fund
shall
be
separate
from
the
general
fund
of
the
24
state
and
shall
not
be
considered
part
of
the
general
fund
of
25
the
state.
Moneys
in
the
fund
shall
be
used
only
as
specified
26
in
this
section
and
shall
be
appropriated
only
for
the
uses
27
specified.
Moneys
in
the
fund
are
not
subject
to
section
8.33
28
and
shall
not
be
transferred,
used,
obligated,
appropriated,
29
or
otherwise
encumbered,
except
as
provided
in
this
section.
30
Notwithstanding
section
12C.7,
subsection
2,
interest
or
31
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
32
the
fund.
33
2.
Moneys
in
the
fund
shall
not
be
disbursed
prior
to
34
July
1,
2026,
and
shall
only
be
used
for
purposes
related
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to
supporting
and
funding
cancer
research
in
the
state.
The
1
department
of
health
and
human
services
shall
develop
an
2
application
process
and
guidelines
for
cancer
researchers
to
3
receive
moneys
from
the
fund.
4
3.
The
department
of
health
and
human
services
shall
report
5
on
the
program
pursuant
to
section
217.21,
beginning
with
the
6
period
disbursements
commence.
7
Sec.
5.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
8
2026.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
imposes
a
tax
on
certain
products
containing
13
nicotine
or
nonnicotine
substances.
14
For
a
vapor
cartridge
sold
at
retail,
the
bill
imposes
a
15
$1.15
tax
per
cartridge.
For
a
nicotine
pouch
sold
at
retail,
16
the
bill
imposes
a
6.8
cent
tax
per
pouch.
For
a
vapor
product
17
requiring
the
use
of
e-liquids,
the
bill
imposes
a
tax
of
18
15
percent
upon
the
retail
sales
price.
For
e-liquids
sold
19
separately
from
a
vapor
cartridge,
the
bill
imposes
a
tax
of
15
20
percent
upon
the
retail
sales
prices.
21
The
taxes
imposed
pursuant
to
the
bill
are
collected
by
the
22
department
of
revenue
and
are
in
addition
to
any
other
taxes
23
imposed
by
law,
including
the
state
sales
tax.
24
The
revenue
generated
by
the
bill
is
credited
to
the
new
25
Iowa
cancer
research
fund
(fund),
under
the
authority
of
the
26
department
of
health
and
human
services
(HHS).
The
bill
27
specifies
moneys
in
the
fund
shall
not
be
disbursed
prior
to
28
July
1,
2026,
and
shall
only
be
appropriated
for
purposes
29
related
to
supporting
and
funding
cancer
research
in
the
state.
30
The
bill
requires
HHS
to
develop
an
application
process
and
31
guidelines
for
cancer
researchers
to
receive
moneys
from
the
32
fund.
33
The
fund
is
not
subject
to
reversion
and
moneys
or
earnings
34
attributable
to
the
fund
are
credited
to
the
fund.
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475
The
bill
defines
“e-liquid”,
“nicotine
pouch”,
“retail
sales
1
price”,
and
“vapor
cartridge”.
2
The
bill
takes
effect
January
1,
2026.
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