All Roll Calls
Yes: 139 • No: 75
IowaSF 248091st General Assembly (2025–2026)SenateWALLET
A bill for an act relating to the taxation and regulation of alternative nicotine products and vapor products, making appropriations, and including effective date provisions. (Formerly SSB 3193.) Effective date: 01/01/2027.
Sponsored By: COMMITTEE ON APPROPRIATIONS
Signed by Governor
ways and meansappropriations
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 1 costs, 2 mixed.
Vape taxes fund Iowa health care
Beginning 2027-01-01, the extra taxes on alternative nicotine and vapor products go into Iowa’s health care trust fund. The money stays separate from the general fund and can be spent only as the law allows.
New licenses and filings for vape sellers
Starting 2027-01-01, distributors and subjobbers of these products must have a license for each business location. They must file monthly returns by the 20th and pay the tax due; the director may allow a discount up to 5%. Keep itemized records for at least three years; the department can inspect during business hours. Remote retailers with Iowa delivery-sales permits must collect and remit Iowa sales/use tax and the excise tax. When tax rates rise, an inventory tax applies to stock held for resale on the increase date. Distributors can get refunds or credits for products shipped out of state, returned to the maker, or destroyed.
New taxes on vaping and nicotine
Beginning 2027-01-01, Iowa charges an excise tax on these products. Alternative nicotine containers are taxed $0.05 per container for up to 20 units, prorated for more. Vapor solutions are taxed $0.05 per milliliter of nicotine. If the distributor did not pay the tax, you owe a use/storage tax at the same rates. In that case, you must file a monthly return and pay by the 20th for the prior month; the department can audit for three years, or longer for fraud or nonfiling.
What counts as vaping or nicotine products
Beginning 2027-01-01, the law defines alternative nicotine products, vapor products, and nicotine analogs. It includes items like e‑cigarettes and cartridges, and covers substances with nicotine-like effects. It excludes cigarettes, tobacco products, and items the U.S. Food and Drug Administration treats as drugs or devices, and parts sold without nicotine. The revenue director can share tax information with other states to help enforce these rules.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON APPROPRIATIONS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 5/2/2026
Passed House
Yes: 67 • No: 18
legislature vote • 5/2/2026
Amendment H-8468
Yes: 28 • No: 57
Senate vote • 4/22/2026
Passed Senate
Yes: 44 • No: 0
Actions Timeline
Signed by Governor.
5/26/2026GovernorFiscal note.
5/19/2026legislatureReported correctly enrolled, signed by President and Speaker, and sent to Governor.
5/18/2026SenateMessage from House.
5/2/2026HouseImmediate message.
5/2/2026legislatureExplanation of vote.
5/2/2026legislaturePassed House, yeas 67, nays 18.
5/2/2026HouseExplanation of vote.
5/2/2026legislatureAmendment H-8468, yeas 28, nays 57, filed, lost.
5/2/2026legislatureExplanation of vote.
5/2/2026legislatureAmendment H-8467, yeas 30, nays 55, filed, lost.
5/2/2026legislatureUnanimous consent for immediate consideration.
5/2/2026legislaturePlaced on Appropriations calendar.
5/2/2026legislatureCommittee vote: Yeas, 20. Nays, 1. Excused, 4.
5/2/2026legislatureCommittee report, recommending passage.
5/2/2026legislatureSubcommittee recommends passage.
5/1/2026legislatureSubcommittee Meeting: 05/01/2026 10:00AM RM 304.
4/30/2026legislatureSubcommittee: Weldon, Johnson, R. and Wood.
4/30/2026legislaturePursuant to Rule 31.7, referred to Appropriations.
4/29/2026legislatureCommittee vote: Yeas, 20. Nays, 4. Excused, 1.
4/28/2026legislatureCommittee report, recommending passage.
4/28/2026legislatureSubcommittee recommends passage.
4/27/2026legislatureFiscal note.
4/23/2026legislatureSubcommittee Meeting: 04/27/2026 12:30PM RM 304.
4/23/2026legislatureSubcommittee: Siegrist, Wessel-Kroeschell and Young.
4/23/2026legislature
Bill Text
As Introduced
Enrolled
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