Iowa HF2406 modifies tobacco-related product taxes, including new taxes on alternative nicotine and vapor products.

Iowa HF2406 revises the administration and taxation of tobacco-related products. It imposes a 50% tax on the wholesale sales price of tobacco products, alternative nicotine products, and vapor products. The bill raises the cigarette tax from 6.8 cents to 14.3 cents per cigarette, increasing the tax on a pack from $1.36 to $2.86. It also increases the tax on loose tobacco products inserted into vending machines from 3.06 cents to 6.43 cents. The bill creates an administrative process for adjusting the cigarette tax based on retail sales price increases.

Iowa HF2406 modifies tobacco-related product taxes, including new taxes on alternative nicotine and vapor products.

Iowa HF2406 revises the administration and taxation of tobacco-related products. It imposes a 50% tax on the wholesale sales price of tobacco products, alternative nicotine products, and vapor products. The bill raises the cigarette tax from 6.8 cents to 14.3 cents per cigarette, increasing the tax on a pack from $1.36 to $2.86. It also increases the tax on loose tobacco products inserted into vending machines from 3.06 cents to 6.43 cents. The bill creates an administrative process for adjusting the cigarette tax based on retail sales price increases.