SF2480: Alternative Nicotine/Vape Products Regulation

Expands definitions to include 'nicotine analogs' in alternative nicotine and vapor products; imposes new excise taxes on these products; specifies tax rates and mechanisms for collection; appropriates a portion of new revenues to pediatric cancer research at the University of Iowa Stead Family Children’s Hospital; makes conforming changes throughout code relating to licensing, recordkeeping, reporting, and refunds; and sets an effective date of January 1, 2027.

Key Points & Impacts

• Expands definitions of 'alternative nicotine product' and 'vapor product' to include 'nicotine analogs,' substances chemically or pharmacologically similar to nicotine.

• Establishes new excise taxes: 5 cents per container of alternative nicotine products (up to 20 units; proportionate for more), and 5 cents per milliliter of nicotine in vapor products.

• Applies the new tax both to distributors and to users/storers if the distributor tax has not been paid.

• Specifies that the new taxes are in addition to any other taxes already imposed on such products.

• Deposits revenues from the new taxes into the health care trust fund, separate from the general fund.

• Annually appropriates up to $3 million from the new taxes for pediatric cancer research, clinical therapy access, and physician-scientist leadership at the University of Iowa Stead Family Children’s Hospital, beginning FY 2027-2028.

• Requires annual reporting by the state board of regents to the general assembly on the outcomes of the funded pediatric cancer programs.

• Makes extensive conforming changes to existing tobacco laws, including licensing, recordkeeping, transport, and refund provisions, to include alternative nicotine and vapor products.

Signed by Governor May 26, 2026. Takes effect January 1, 2027.