Relating to the taxation of cigarettes, tobacco products, vapor products, and consumable hemp products, and making appropriations to the department of health and human services and the department of justice

This bill relates to the taxation of cigarettes, tobacco products, vapor products, and consumable hemp products, and makes appropriations to the department of health and human services and the department of justice. DIVISION I —— CIGARETTE TAXATION. _____ per cigarette.01. The bill also raises the tax on loose tobacco products inserted into a vending machine from which assembled cigarettes are dispensed.52 cents. By increasing the cigarette tax in the bill, the inventory tax is also assessed on cigarettes remaining in inventories taxed under the previous tax rate that is equal to the difference between the previous tax rate and the new tax rate. 35A. DIVISION II —— TAX ON TOBACCO PRODUCTS.43(1)(b) for a combined rate of percent tax on the wholesale sales price. The bill combines the percent rate and the percent rate and raises the tax on tobacco products from the combined rate of percent to percent of the wholesale sales price. Currently, the tax on cigars is capped at cents per cigar.43(1).19 per ounce. _____ previous tax rate and the new tax rate.35A.43. DIVISION III —— EXCISE TAX ON VAPOR PRODUCTS. The bill creates an excise tax on vapor products at a rate of percent on the sales price from the retail sale, including a delivery sale, of vapor products to consumers. The excise tax is in addition to any other tax imposed by law. The excise tax shall be collected at the point of sale from the consumer. The bill requires the director of revenue to administer the vapor product excise tax as nearly as possible in conjunction with the administration of the state sales and use tax law, except that portion of the law that implements the streamlined sales and use tax agreement.35A. The bill requires the department to adopt rules to administer the new excise tax. The bill makes other conforming changes to implement the new tax. DIVISION IV —— EXCISE TAX ON CONSUMABLE HEMP PRODUCTS. The bill creates an excise tax on consumable hemp products at a rate of percent on the sales price from the retail sale, including a delivery sale, of consumable hemp products to consumers. The excise tax is in addition to any other tax imposed by law. The bill requires the department to adopt rules to administer the new excise tax. The bill requires the director of revenue to administer the consumable hemp excise tax as nearly as possible in conjunction with the administration of the state sales and use tax law, except that portion of the law that implements the streamlined sales and use tax agreement.35A. DIVISION V —— APPROPRIATIONS.35A, to be used to provide a grant to the Iowa healthiest state initiative to support the double up food bucks program to make fresh fruits and vegetables sold at farmers markets, grocery stores, and other participating locations accessible to individuals and families who reside in this state and receive assistance through the federal supplemental nutrition assistance program.35A, to be used to provide victim assistance grants to care providers providing services to victims of human trafficking.