Bills › 91st General Assembly
Relating to the taxation and regulation of alternative nicotine products and vapor products, making appropriations, and including effective date provisions
Sponsored by the Senate Appropriations Committee
Topics:State budget
Same legislation: SSB 3193
Where it is now
- Done: IntroducedApril 6, 2026
- Done: SubcommitteeApril 6, 2026
- Done: Senate committeeApril 8, 2026
- Done: Passes the SenateApril 22, 202644–0
- Done: House committeeApril 28, 2026
- Done: Passes the HouseMay 2, 202667–18
- Done: To the GovernorMay 18, 2026
- Done: Signed into lawMay 26, 2026
Signed into law What’s a funnel?
What’s in it
This bill regulates alternative nicotine products and vapor products and imposes taxes upon the wholesale sales price of such products, and makes numerous conforming changes to Code chapter 453A (cigarettes and tobacco-related products). The bill defines “nicotine analog” to mean a substance that has a chemical structure that is substantially similar to nicotine, or that has an effect on the central nervous system that is substantially similar to, or greater than, the effects of nicotine on the central nervous system.
Read the full explanation
The bill adds “nicotine analog” to the definitions of “alternative nicotine product” and “vapor product”. The bill imposes an additional tax on alternative nicotine products upon any person engaged as a distributor of alternative nicotine products, at the rate of cents per container containing up to units, and a proportionate tax at the same rate on each unit in excess of units. The bill imposes an additional tax on vapor products upon any person engaged as a distributor of vapor products, at the rate of cents per milliliter of nicotine in a solution and a proportionate tax at the same rate on any fractions of a milliliter. The tax imposed upon the vapor products shall be imposed based on the net volume of the solution as listed by the manufacturer. In the alternative, the bill imposes the additional alternative nicotine products tax or vapor products tax, as applicable, upon the use or storage of the alternative nicotine products or vapor products, at the same rates as the tax on the distributor, if the tax on the distributor has not been paid by the distributor.35A. Beginning with FY 2027-2028, and for each fiscal year thereafter, the bill appropriates not more than $3 million of the taxes that are attributable to the additional taxes on alternative nicotine products or vapor products from the health care trust fund to the state board of regents. The bill specifies the purpose of the appropriation is for conducting pediatric cancer research, clinical therapy access, and for providing physician-scientist leadership at the university of Iowa Stead family children’s hospital. The bill requires the state board of regents to file an annual report with the general assembly about the programs funded by the appropriation beginning December 2028. The bill takes effect January 1, 2027.
From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Changed since by amendment S-5201; see Amendments. Full bill text · What changed before it passed
House subcommittee
Named April 30, 2026. On May 1, 2026 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
4 written public comments to its subcommittee: May 1, 2026 (1), April 27, 2026 (3) · on the Legislature’s site
Fiscal note
More revenue: up to $3.0M Compare with other bills
Senate File 2480 is estimated to increase revenue to the HCTF by the following amounts: • FY 2027 = $1.6 million • FY 2028 = $2.6 million • FY 2029 = $2.7 million • FY 2030 = $2.9 million • FY 2031 = $3.0 million Under the Bill, it is estimated that the annual standing appropriation from the HCTF to the BOR for pediatric cancer research will be the following amounts: • FY 2028 = $2.6 million • FY 2029 = $2.7 million • FY 2030 = $2.9 million • FY 2031 = $3.0 million
The estimate held steady
The largest dollar figure in each version’s summary.
- Final Fiscal Note — Taxation of Vapor Products, Appropriations · May 19, 2026 · $3.0M
- Taxation of Vapor Products, Appropriations · April 23, 2026 · $3.0M
- Taxation of Vapor Products, Appropriations · April 20, 2026 · $3.0M
Nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is first. Reading a fiscal note
Iowa Code it changes
Creates§453A.43A
Amends§453A.1§453A.35A§453A.40§453A.42§453A.44§453A.45§453A.46§453A.47§453A.47C§453A.48
Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works
Lobbying
0 for · 6 against · 29 undecided · Who →
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Where this legislation came from and where it went: earlier tries, the versions it moved through this Assembly, and later bills built on it.
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91st General Assembly
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