Levy of Tax; Applicability; Exceptions

# (a)

Beginning October 1, 2026, there is levied an excise tax upon all consumable vapor products sold at wholesale in this state or imported into this state for use, consumption, or sale at retail. The tax shall be ten cents ($0.10) per milliliter of a consumable vapor product. The tax shall not apply to sales between licensed wholesalers, it being the purpose and intent of this provision that the tax levied is a levy on the ultimate consumer or user of consumable vapor products with the wholesaler acting merely as an agent of the state for the collection and payment of the tax to the state.

# (b)

# (1)

Except as provided in subdivision (2), the tax shall be in addition to all other licenses and taxes levied by law.

# (2)

The tax levied in subsection (a) shall be in lieu of any business license fee measured by the volume of sale for selling consumable vapor products. Any act of the Legislature or resolution by a county commission passed or enacted on or before October 1, 2025, imposing a business license fee on engaging in the business of selling consumable vapor products, is void. Nothing in this section shall be construed to restrict a municipality’s authority to issue a business license pursuant to Article 2 of Chapter 51 of Title 11 on the privilege of doing business as a consumable vapor products wholesaler, importer, or retailer. Any business license issued pursuant to Article 2 of Chapter 51 of Title 11 shall not be measured by the volume of sale for selling consumable vapor products.

# (3)

Notwithstanding any other provision of this article, an act of the Legislature or an ordinance or resolution by a taxing authority passed or enacted on or before October 1, 2025, imposing or providing for the levy of a local tax or license fee shall remain operative; however, no additional local tax or license fee may be levied on the sale of consumable vapor products after October 1, 2025.

# (c)

The tax shall not apply to any consumable vapor product exported from this state for which proof of export is available in the form of a bill of lading, shipping document, or invoice.