HF 2523: Relating to cigarettes, tobacco, tobacco products, alternative nicotine products, and vapor products, and including taxation of such products

What it does

This bill redefines alternative nicotine and vapor products as tobacco products, thereby making applicable to alternative nicotine and vapor products all provisions applicable to tobacco products with the exception of the rate of taxation of such products. Under the bill, these products are taxed at a reduced rate relative to other tobacco products at percent of the wholesale sales price or cost. Additionally, the revenue from the tax on these products is credited to the health care trust fund with the amount generated from percent of the rate to be used to fund civil and criminal specialty courts involving individuals with substance use disorder or mental health issues and with the amount generated from percent of the rate to be appropriated to the department of public health to be used for tobacco use prevention and control under Code chapter 142A.

Lobbying · 12 for, 7 against

For: American Cancer Society Cancer Action Network (ACS CAN); American Heart Association; American Lung Association; Blank Childrens Hospital; CAFE Iowa Citizen's Action Network (Clean Air for Everyone); Iowa Alliance of YMCA's; Iowa Association of Rural Health Clinics; Iowa Behavioral Health Association (IBHA); Iowa Mental Health Advocacy; Iowa Nurses Association; Iowa Primary Care Association; Iowa School Nurses Organization

Against: Altria Client Services LLC and its Affiliates; Cigar Association of America, Inc.; FUELIowa (PMCI); Iowa Attorney General Dept. of Justice; Iowans For Alternatives To Smoking And Tobacco; Juul Labs; RAI Service Co.

In plain words

1. February 23, 2022Filed in the House and sent to the Ways and Means committee