Increasing the tax on electronic cigarettes and crediting the revenue to the children's initiative fund.

Session of 2026
HOUSE BILL No. 2783
By Committee on Taxation
Requested by Representative Goetz
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AN ACT concerning taxation; relating to electronic cigarettes; increasing
the tax on electronic cigarettes and crediting the increased revenue to
the children's initiative fund; amending K.S.A. 79-3387 and 79-3399
and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 79-3387 is hereby amended to read as follows: 79-
3387. (a) Except as otherwise provided in subsection (c), all revenue
collected or received by the director from taxes imposed by this act shall
be remitted to the state treasurer in accordance with the provisions of
K.S.A. 75-4215, and amendments thereto. Upon receipt of each such
remittance, the state treasurer shall deposit the entire amount in the state
treasury to the credit of the state general fund.
(b) All moneys received from license fees , forfeiture proceeds under
K.S.A. 79-3324a, and amendments thereto, and fines imposed by this act
shall be collected by the director and shall be remitted to the state treasurer
in accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount in the state treasury to the credit of the cigarette
and tobacco products regulation fund created by K.S.A. 79-3391, and
amendments thereto, and such proceeds shall be used exclusively for
cigarette and tobacco products regulation and enforcement, and not for any
other purpose.
(c) The state treasurer shall deposit and credit $.10 of each mililiter
of consumable material for electronic cigarettes, or the proportionate tax
at the like rate of all fractional parts thereof, collected or received from
taxes imposed pursuant to K.S.A. 79-3399, and amendments thereto, to the
children's initiative fund established in K.S.A. 38-2102, and amendments
thereto.
Sec. 2. K.S.A. 79-3399 is hereby amended to read as follows: 79-
3399. (a) On and after July 1, 2017, A tax is hereby imposed upon the
privilege of selling or dealing in electronic cigarettes in this state by any
person engaged in business as a distributor thereof, at the rate of $.05 $.15
per milliliter of consumable material for electronic cigarettes and a
proportionate tax at the like rate on all fractional parts thereof. For
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HB 2783 2
electronic cigarettes in the possession of retail dealers for which tax has
not been paid, tax shall be imposed under this subsection at the earliest
time the retail dealer:
(1) Brings or causes to be brought into this state from without the
state electronic cigarettes for sale;
(2) makes, manufactures or fabricates electronic cigarettes in this
state for sale in this state; or
(3) sells electronic cigarettes to consumers within this state.
(b) As used in this section, "consumable material" means any liquid
solution or other material that is depleted as an electronic cigarette is used.
(c) The secretary of revenue shall adopt rules and regulations to
implement the provisions of this section.
Sec. 3. K.S.A. 79-3387 and 79-3399 are hereby repealed.
Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.
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