An act relating to the regulation of tobacco products and tobacco substitutes
Sponsored By: Virginia "Ginny" V Lyons (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 3 benefits, 6 costs, 0 mixed.
Tobacco buyers face online delivery limits
Beginning July 1, 2026, covered tobacco products or substitutes ordered by mail or online generally cannot be shipped to consumers. Shipments generally must go to a licensed Vermont wholesaler, which may ship directly to a licensed Vermont retailer. Each shipment or transport can count as a separate violation. Unlawful shipments carry civil penalties up to $5,000 per violation and criminal penalties up to five years in prison, a $5,000 fine, or both.
Illegal tobacco stock brings seizure costs
Beginning July 1, 2026, tobacco substitutes join products treated as contraband when sold or held for sale illegally. Covered stock can be seized and must be destroyed at the violator's expense under Vermont hazardous-waste rules. Possessing this contraband carries a fine of $500 to $1,000 per item.
Tobacco retailers pay higher license fees
Beginning July 1, 2026, retailers pay $150 for a tobacco license or renewal, up from $110. A tobacco-substitute endorsement costs $75, up from $50; fees go to the Liquor Control Enterprise Fund. Retailers need local approval and a license to sell tobacco products, substitutes, or paraphernalia; substitutes also require an endorsement. Licenses and endorsements last one year from issue, rather than expiring each April 30, and must be displayed. Unlicensed sales now carry civil penalties instead of the former misdemeanor: up to $2,000 initially and $5,000 per later offense.
Tobacco sellers face stronger underage penalties
Beginning July 1, 2026, selling or furnishing covered items to someone under 21 carries a first-offense civil penalty up to $150, formerly $100. Later offenses carry civil penalties up to $500, alongside separate administrative sanctions for repeat license violations. A second license violation brings at least $1,000 and suspension for two consecutive weekdays; a third brings at least $2,000 and 15 consecutive days. A fourth brings at least $3,500 and a 90-consecutive-day suspension. A fifth brings at least $5,000 and license revocation.
Tobacco wholesalers face licenses and fees
Covered-product importers, distributors, and sellers must be licensed wholesalers or buy their products from one. Beginning July 1, 2027, wholesale licensing moves from the tobacco-tax laws to the Division of Liquor Control. Each outlet needs its own one-year license, costing $1,245 annually; wholesalers may sell only to Vermont-licensed wholesalers or retailers. Licenses must be displayed and returned for cancellation when the business transfers or stops operating at the licensed location. Nonresident importers must obtain licenses and meet bonding requirements; legal violations can lead to suspension or revocation. Unlicensed wholesale sales, offers, or stock held for sale carry civil penalties up to $2,000 initially and $5,000 per later offense.
Underage tobacco violations lose cash fines
Beginning July 1, 2026, the law removes the $25 fine for possession that violates Vermont's under-21 tobacco restrictions. Products and paraphernalia remain subject to immediate confiscation; employee possession during sales and Indigenous cultural possession exceptions remain. Using false identification to buy or try to buy covered items no longer carries the stated fine of up to $50. Instead, the person chooses up to 10 hours of community service or a nationally recognized youth tobacco-cessation program selected by the Department of Health. The Judicial Bureau handles under-21 age-misrepresentation cases, replacing its listed jurisdiction over tobacco possession and procurement.
Tax records support tobacco law enforcement
Beginning July 1, 2026, Vermont's tax commissioner may share tax returns or return information with the Department of Liquor and Lottery. Sharing is limited to investigating possible tobacco-law violations or enforcing the tobacco chapter. State conditions and applicable IRS confidentiality rules still apply. Taxpayers do not have to submit new information.
Consumers gain protections against disguised tobacco
Beginning July 1, 2026, Vermont bans tobacco products and substitutes that imitate non-tobacco products or hide their nature. The restrictions cover marketing, labels, branding, ads, distribution, and sales, including terms or images of imitated products. The Attorney General can seek up to $5,000 per instance, certain costs, and reasonable legal fees. Other remedies under Vermont's consumer-protection law also apply.
More nicotine products face tobacco rules
Beginning July 1, 2026, Vermont's tobacco-substitute rules cover more products made with natural or synthetic tobacco or nicotine. Covered products include nicotine pouches, qualifying electronic devices, liquids with or without nicotine, and separately sold delivery devices. Cannabis products and FDA-approved products for quitting tobacco or other medical uses are excluded. Nicotine pouches also count as “new smokeless tobacco” under state tax definitions. These changes expand which products face tobacco rules; they do not set a new tax rate.
Sponsors & Cosponsors
Sponsor
Virginia "Ginny" V Lyons
Democratic • Senate
Cosponsors
Alison Clarkson
Democratic • Senate
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
Senate Message: Signed by Governor June 16, 2026
5/29/2026SenateSigned by Governor on June 16, 2026
5/29/2026SenateDelivered to Governor on June 10, 2026
5/29/2026SenateSenate Message: House proposal of amendment concurred in
5/22/2026SenateAs passed by Senate and House
5/21/2026SenateHouse proposal of amendment concurred in
5/21/2026SenateHouse proposal of amendment; text
5/21/2026SenateHouse proposal of amendment
5/21/2026SenateHouse proposal of amendment
5/20/2026SenateEntered on Notice Calendar
5/20/2026SenateHouse message: House passed bill in concurrence with proposal(s) of amendment
5/19/2026HouseRead third time and passed in concurrence with proposal of amendment
5/15/2026HouseRep. Kornheiser of Brattleboro moved to amend the House proposal of amendment, which was agreed to
5/15/2026HouseAction Calendar: Third Reading
5/15/2026HouseThird Reading ordered
5/14/2026HouseReport of Committee on Commerce and Economic Development, as amended, agreed to
5/14/2026HouseReport of Committee on Commerce and Economic Development amended as recommended by Committee on Human Services
5/14/2026HouseRep. Burkhardt of South Burlington recommended for the Committee on Ways and Means
5/14/2026HouseRep. Noyes of Wolcott reported for the Committee on Human Services
5/14/2026HouseRep. Graning of Jericho reported for the Committee on Commerce and Economic Development
5/14/2026HouseRead second time
5/14/2026HouseAction Calendar: Favorable with Amendment
5/14/2026HouseNotice Calendar: Favorable with Amendment
5/13/2026HouseReferred to Committee on Ways and Means per Rule 35(a)
5/8/2026HouseNotice Calendar: Favorable with Amendment
5/8/2026House
Bill Text
As Enacted (ACT 148)Opens in a new window
6/19/2026
As Passed by Both Chambers
6/5/2026
As Passed by Both Chambers (Unofficial)
6/5/2026
House Proposal of Amendment
5/19/2026
House Proposal of Amendment (Unofficial)
5/19/2026
As Passed by the Senate
4/3/2026
As Passed by the Senate (Unofficial)
4/3/2026
As Introduced
1/5/2026
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