USA: Tobacco Regulation – States

Share on twitter
Share on email
Share on whatsapp
Share on linkedin

August 2026: California Legislature Approves Historic Ban on Single-Use Disposable Vapes

The California Legislature has passed landmark legislation banning the sale and distribution of disposable, single-use e-cigarettes, moving the state to the forefront of national efforts to curb electronic waste and mitigate recycling facility fires. The measure, Assembly Bill 762 (AB 762), targets single-use vaping products that embed non-removable lithium-ion batteries inside disposable plastic housings. The bill passed both houses of the state legislature following strong advocacy from environmental, waste management, and public health coalitions.

Consumer advocacy group Public Interest Research Group (PIRG), alongside state affiliate CALPIRG and co-sponsors Californians Against Waste, the California Product Stewardship Council, and RethinkWaste, welcomed the legislature’s approval as a critical victory for environmental protection and public safety. PIRG and environmental organizations have long flagged disposable vapes as a major environmental and safety hazard. Unlike traditional reusable e-cigarettes that feature separate, rechargeable batteries and refillable pods, disposable vapes are designed to be thrown away once the pre-filled e-liquid runs out. Because spent devices are frequently discarded in regular trash or recycling bins, the embedded lithium-ion batteries regularly get crushed in waste trucks and material recovery facilities, sparking costly and dangerous fires.

In addition to fire hazards, advocates highlighted the heavy ecological footprint of single-use electronics. Disposable vapes contribute to hazardous e-waste, microplastic contamination, and toxic chemical leaching into waterways and soil. According to PIRG, disposable models surged to account for more than half of all U.S. e-cigarette sales in recent years, despite being manufactured with high-value rechargeable batteries that are discarded after only a few days of use.

Under the provisions of AB 762, the state will phase out single-use nicotine vaping products, requiring devices sold in California to feature removable batteries, rechargeable capabilities, or refillable pods. The bill sets enforcement penalties for non-compliant distributors and retailers, with fines ranging from $500 for initial violations up to $2,000 for subsequent offenses.

While convenience store associations and retailer groups voiced concerns regarding potential impacts on legal small businesses, legislative supporters argued that the law simply transitions the market toward safer, reusable alternatives while holding manufacturers accountable for unsustainable product design.

With California becoming the first U.S. state to pass a comprehensive ban on single-use e-cigarettes, the legislation aligns the state with international jurisdictions – including the United Kingdom, Belgium, and France – that have enacted similar restrictions on disposable vapes. The bill now heads to the Governor’s desk for signature.

August 2026: State Legislatures Tighten Nicotine Regulation Through Taxes, Product Restrictions and Vape Registries

As U.S. state legislative sessions wind down for 2026, regulation of tobacco and nicotine products is becoming increasingly focused on the products that are driving the industry’s transition away from cigarettes. Rather than relying primarily on traditional tobacco-control measures, states are increasingly using excise taxes, restrictions on flavored and disposable products, and state-level product directories to determine which nicotine products can be sold and at what cost.

The emerging framework is not uniform. Some states are attempting to differentiate between combustible tobacco and lower-risk alternatives through tax structures, while others are applying high or broadly defined taxes across modern nicotine categories. At the same time, vapor-product directories are evolving into a significant state-level mechanism for controlling legal market access, particularly for the large number of products that have not received FDA marketing authorization.

Taxes: States Expand the Tax Base to Modern Nicotine Products

The continued migration of consumers from cigarettes toward vaping, nicotine pouches and other non-combustible products is creating a structural challenge for state tobacco-tax systems. Cigarette volumes continue to decline, while many states historically had limited or no specific excise taxes on newer nicotine categories. Legislatures are therefore increasingly expanding their tax bases rather than focusing exclusively on raising cigarette taxes.

The most notable 2026 examples illustrate the wide range of approaches. Iowa enacted a new tax effective January 1, 2027, imposing 5 cents on containers of alternative nicotine products containing up to 20 units and 5 cents per milliliter on vapor products containing nicotine or nicotine analogues. The law therefore establishes relatively modest specific taxes on two of the fastest-growing modern nicotine categories.

South Carolina has taken a similar per-volume approach for vaping. Legislation enacted in 2026 provides for a 5-cent-per-milliliter tax on consumable nicotine liquid or other material depleted during use of a vapor product. The same legislation also introduced a separate tax on heated cigarettes, demonstrating that states are increasingly creating dedicated tax categories for products that previously fell outside traditional cigarette definitions.

Utah represents a very different model. From July 1, 2026, electronic cigarettes are subject to a 71% tax on manufacturer sales price, while alternative nicotine products other than pouches are taxed at 73%. Nicotine pouches are subject to a $1.00-per-can tax, plus 5 cents for each pouch above 20. The structure illustrates how some states are treating modern nicotine products primarily as revenue-generating tobacco substitutes rather than applying preferential rates based on their relative risk.

This divergence is likely to remain a defining feature of state nicotine taxation. A recent academic assessment found that 21 states already imposed specific excise taxes on nicotine pouches as of December 2025, with rates and structures varying substantially. Seven states used specific taxes and 14 used ad valorem taxes, with ad valorem rates ranging from 10% to 95%.

The key implication for the industry is therefore not simply that taxes are rising. It is that tax classification is becoming an increasingly important determinant of the economics of individual nicotine categories. The difference between a per-unit, per-milliliter and percentage-of-wholesale tax can materially alter the relative pricing of cigarettes, vaping products, heated tobacco and nicotine pouches, and consequently influence switching incentives and channel economics.

Flavor Restrictions Are Evolving Into Broader Product Controls

Flavor restrictions remain an important element of state tobacco policy, but the legislative picture is more nuanced than a simple expansion of statewide flavor bans.

Bills seeking to restrict flavored tobacco and nicotine products continued to appear during the 2025-26 legislative cycle, including proposals in Washington and other states. Washington legislation, for example, proposed prohibiting the sale, display, marketing or advertising of flavored tobacco and nicotine products and entertainment vapor products.

However, the failure of a number of broad flavor-ban proposals should not be interpreted as evidence that lawmakers are abandoning product restrictions. Instead, states are increasingly using narrower mechanisms to target the products considered most problematic, particularly youth-oriented disposable vapes.

Hawaii provides a good illustration. In 2026, the state enacted legislation requiring manufacturers of electronic smoking devices and e-liquids to certify FDA marketing authorization and creating a state directory of products eligible for sale. Separately, Hawaii enacted legislation prohibiting the sale of non-refillable and non-rechargeable electronic smoking devices from January 1, 2027.

West Virginia has adopted another hybrid approach. Its 2026 Vape Safety Act combines a vapor-product directory with retailer licensing, operating requirements and restrictions on product marketing associated with youth-oriented imagery and terminology. Certain restrictions on products using terms such as “candy,” “bubble gum” and references to cartoons and other youth-oriented imagery take effect in 2027.

This suggests that the more important trend is not necessarily the proliferation of comprehensive flavor bans. It is the increasing use of product-level eligibility rules to remove specific categories of products from the legal market.

Nor should the economic consequences of flavor restrictions be presented as settled. Evidence from Massachusetts shows that its comprehensive flavored-tobacco restriction was associated with a substantial reduction in cigarette sales and an estimated reduction in smoking prevalence. A study specifically examining cross-border effects found no statistically significant increase in cigarette sales in neighboring states attributable to the Massachusetts ban.

This does not eliminate concerns about illicit trade, lost tax revenue or cross-border purchasing. Rather, it means that these should be treated as potential enforcement and fiscal consequences that depend on product, geography, tax differentials and enforcement intensity, rather than as automatic outcomes of flavor restrictions.

Product Directories Are Becoming a New Layer of Market Access Regulation

The most consequential development for the vapor industry is the proliferation of state vapor-product directories, sometimes referred to as PMTA registries.

These systems emerged partly from the difficulty of translating the FDA’s federal PMTA regime into practical state-level retail enforcement. The FDA has authorized only a very small number of e-cigarette products relative to the enormous number of products available in the U.S. market, while thousands of other products have been subject to applications, enforcement actions, litigation or other forms of regulatory uncertainty.

States are increasingly responding by creating their own certification and directory systems. The result is a second layer of market-access regulation: a product may need to satisfy federal requirements and, in addition, meet a state’s certification and listing requirements before it can legally be sold.

The systems are not identical. North Carolina, for example, permits products to qualify for its directory where the manufacturer has an FDA marketing order or a timely filed PMTA that remains under FDA review, as well as certain products subject to stayed, rescinded or vacated denial orders. Only products appearing in the state directory may ultimately be sold at retail.

Other states are moving toward stricter standards. Hawaii’s 2026 law requires manufacturers to certify that they have received an FDA marketing granted order before products can qualify for its state directory.

South Carolina also joined the registry movement in 2026. Its legislation creates a state directory of vapor products and requires manufacturers to establish their eligibility under the federal regulatory framework before products can be sold in the state.

West Virginia’s Vape Safety Act goes further by combining the directory with licensing and operating requirements for vape and smoke shops. Beginning September 1, 2026, products not included in the state’s directory cannot be sold, with civil penalties applying to non-compliant sellers.

The precise number of states with registry-type systems depends on the definition used and on whether legislation that has been enacted but is not yet operational is included. Recent industry and compliance trackers put the number of active systems in the mid-teens, while broader counts of enacted or certification-style frameworks are higher.

The more important point, however, is the direction of travel. State directories are shifting from being an administrative tool into a substantive market-access mechanism. For manufacturers, distributors and retailers, compliance increasingly requires state-by-state product certification, documentation and inventory management. For consumers, the practical effect is that the range of legally available vapor products can differ substantially between neighboring states.

State Regulation Is Becoming More Fragmented, Not More Uniform

The 2025-26 legislative cycle therefore points to a more fragmented U.S. nicotine market rather than the emergence of a single state regulatory model.

Tax policy is moving in several directions simultaneously. Some states are introducing relatively modest specific taxes on vaping and oral nicotine products, while others are imposing high ad valorem rates. Flavor policy is increasingly being supplemented by targeted restrictions on disposable devices, youth-oriented products and product characteristics. Meanwhile, vapor directories are creating state-specific definitions of which products are eligible for legal sale under the federal PMTA framework.

For the nicotine industry, this creates three distinct commercial consequences. First, relative taxation is becoming an increasingly important competitive variable between categories. Second, product portfolios will face growing state-by-state restrictions, particularly in the vapor segment. Third, regulatory compliance itself is becoming a barrier to market access, favoring manufacturers with the resources to manage complex certification, documentation and state reporting requirements.

The next phase of state regulation is therefore unlikely to be defined simply by more cigarette taxes or a nationwide wave of flavor bans. The more significant development is the emergence of state-level product-market architecture: taxes that distinguish between nicotine formats, restrictions targeting specific product characteristics, and directories that determine which products can legally reach consumers.

As state legislatures reconvene in 2027, these mechanisms are likely to become increasingly interconnected. Tax policy will influence the relative economics of switching between nicotine categories; product restrictions will determine which alternatives are available; and state directories will increasingly determine which vapor products can participate in the legal market at all.

July 2026: Indiana’s Ban on Foreign-Made Vapes Takes Effect, Forcing Retailers to Revamp Supply Chains

A new Indiana law prohibiting the sale of vaping products manufactured in designated foreign adversaries has taken effect, forcing local retailers and distributors across the state to audit store inventories and adjust overseas supply chains. The legislation, Senate Enrolled Act 185, specifically targets unauthorized e-cigarettes and vaping devices produced in China.

According to state lawmakers and the Indiana Alcohol and Tobacco Commission (ATC), the measure is designed to protect consumers from illicit vape products containing dangerous or unregulated chemicals – many of which are prohibited in their countries of origin yet exported to the United States. State officials also maintain that the legislation helps prevent local consumer spending from flowing to foreign manufacturers.

Under the law, vape shop owners and retailers operating in Indiana must verify the manufacturing origin and supply-chain documentation for all e-liquids, closed systems, and electronic vapor devices on their shelves. Stores caught distributing non-compliant or illegally imported foreign vaping products face strict regulatory enforcement, including civil penalties of up to $10,000 per violation and the potential revocation of their state tobacco sales certificates.

The enactment marks a significant shift in state-level tobacco and e-cigarette regulation. While traditional oversight focused primarily on age restrictions, flavor bans, and licensing, Indiana’s policy targets manufacturing origin and supply-chain transparency – a model that could influence future regulatory efforts in other states amid growing concerns over illicit imports.

July 2026: Oregon Supreme Court Clears Final Hurdle for Flavored Tobacco Bans in State’s Largest Counties

Comprehensive bans on flavored tobacco and nicotine products in Oregon’s two most populous counties are finally moving toward implementation. The final major legal roadblock was cleared after the Oregon Supreme Court declined to review a lower-court ruling upholding Multnomah County’s ordinance.

The high court’s decision leaves an Oregon Court of Appeals ruling intact, solidifying a monumental shift in local tobacco regulation. It follows a unanimous decision by the state Supreme Court in May 2026 that upheld a nearly identical ordinance in neighboring Washington County. Combined, the two local policies will eliminate flavored tobacco sales for roughly one-third of Oregon’s population.

Originally passed by county commissioners in 2021 – and subsequently approved by Washington County voters in 2022 – the bans have been tied up in court for nearly four years. Retail groups had sued to block the restrictions, arguing that the state’s tobacco retail licensure framework preempted local bans and warning that the policies would drive consumers to an unregulated illicit market.

Under the upcoming restrictions, retailers in Multnomah and Washington counties will be prohibited from selling menthol cigarettes, flavored e-cigarettes, flavored cigars, and flavored synthetic or oral nicotine products (such as fruit-flavored pouches). To further curb youth initiation, policies like Washington County’s Ordinance 878 will also outlaw coupons, price promotions, and discounts on all tobacco products. Public health advocates hailed the legal conclusion as a historic victory. Health officials have long argued that sweet and minty flavors are deliberately marketed by the tobacco industry to addict youth and target minority communities. According to local health data, roughly three-quarters of youth tobacco users in the region reported starting with flavored products.

With the litigation largely resolved, county public health departments are shifting focus toward implementation. Officials plan to provide education and resources to local businesses to help them transition into compliance before formal enforcement and civil fines begin.

July 2026: Hawaii Enacts Sweeping Crackdown on E-Cigarettes, Banning Disposables and Targeting Illegal Vapes

In a major coordinated effort to curb youth nicotine addiction and protect the environment, the Hawaii Governor has signed two complementary pieces of legislation that will fundamentally alter the state’s vape marketplace. Senate Bill 2175 (now Act 189) and House Bill 1573 (now Act 190) position Hawaii at the forefront of state-level electronic smoking device regulations.

Act 189: A Total Ban on Disposable Vapes

The first major measure, Act 189, completely prohibits the sale, offer for sale, or distribution of all disposable electronic smoking devices across the state starting January 1, 2027. Retailers or entities caught violating the ban will face severe penalties, including fines of up to $100 per day for each individual violation. Beyond the public health goal of keeping cheap flavored vapes out of the hands of youth, lawmakers emphasized that Act 189 addresses an escalating environmental crisis. Unlike traditional tobacco products, single-use disposable vapes rely on hazardous materials, including non-biodegradable plastics and lithium-ion batteries. In Hawaii, these discarded devices have been directly linked to local landfill fires, pervasive litter, and water contamination, threatening the state’s fragile ecosystem and ʻāina (land).

Act 190: Striking Down Unauthorized Products

While Act 189 eliminates single-use products, Act 190 heavily restricts the remaining reusable e-cigarettes and e-liquids permitted to be sold in Hawaii. The new law introduces a strict state certification process, requiring vape manufacturers to provide explicit documentation proving their products have received marketing authorization from the U.S. Food and Drug Administration (FDA). Under Act 190, the Hawaii Department of the Attorney General is tasked with creating and maintaining a publicly accessible white-list directory of compliant products. Any manufacturer that fails to certify their products, or any distributor, wholesaler, or retailer found acquiring, transporting, or selling vapes not included on the official state directory, will face stiff legal penalties.

Advocates say the enforcement tool is designed to close existing loopholes that allowed unauthorized, copycat, and heavily flavored foreign vaping products to slip onto store shelves. Community health organizations and lawmakers view the dual laws as a necessary, aggressive response to predatory marketing and environmental degradation. By combining a strict environmental ban on disposables with rigorous regulatory oversight of reusable systems, Hawaii officials hope to dismantle the black market for illicit vapes and foster a healthier environment for future generations.

February 2026: State Legislatures Advanced Key Tobacco Policies in 2025

In 2025, state tobacco policy continued to evolve as traditional cigarettes declined in popularity and alternative nicotine products – including vapor products and nicotine pouches – became primary targets for taxation and regulation. Significant legislative activity was observed across multiple areas, including excise taxes, product eligibility, flavor bans, and premium cigar taxation.

State legislatures pursued a broad range of tobacco tax increases in 2025, targeting cigarettes, vapor products, and other nicotine products. Tax increases on cigarettes were enacted in Hawaii, Indiana, Maine, New Jersey, Alabama, Rhode Island, Tennessee, and Washington. In addition, at least 17 states considered raising cigarette excise taxes: Delaware, Georgia, Louisiana, Massachusetts, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Mexico, New York, North Dakota, Ohio, Rhode Island, South Carolina, South Dakota, and Washington. Vapor product taxes were a growing focus, with bills introduced in Alabama, Alaska, Arizona, Delaware, Georgia, Idaho, Illinois, Iowa, Louisiana, Michigan, Mississippi, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Ohio, Texas, Utah, Washington, and Wisconsin. Tennessee imposed a 10% wholesale tax on vapor products, while Indiana raised taxes on closed system cartridges and electronic cigarettes. Other Tobacco Product (OTP) tax increases were enacted or considered in Delaware, Illinois, Louisiana, Maine, Massachusetts, Mississippi, New Mexico, New York, North Dakota, South Dakota, Washington, and West Virginia. Proposals to repeal all tobacco taxes were introduced in Michigan and West Virginia but did not gain traction.

Nicotine pouches became a significant legislative focus in 2025, with bills introduced in at least 20 states: Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Massachusetts, Michigan, Mississippi, Montana, Nebraska, New Mexico, New York, North Dakota, Oregon, Rhode Island, South Dakota, Texas, Vermont, and Washington. Notable enactments included Indiana raising its tax from $0.40 to $0.50 per ounce, Oregon introducing a per-unit tax of $0.0325 with a minimum of $0.65 for packages containing 20 units or fewer, and Rhode Island adding nicotine pouches to its OTP tax category at 80% of wholesale price. These developments reflect the growing recognition of nicotine pouches as a distinct taxable product.

State-level vapor product directory legislation, which restricts legal sales to products that have received FDA authorization or are under FDA review through the PMTA process, continued to expand. At least 26 states considered such legislation in 2025. Arkansas and Tennessee enacted new directories, while Alabama, Utah, and Wisconsin introduced amendments to existing registry laws. Kentucky and North Carolina filed bills to repeal directories, and Mississippi introduced legislation to create a cigarette sales directory. These requirements may significantly limit product availability while emphasizing FDA authorization as a gatekeeping mechanism.

Flavored tobacco and vapor products also remained a key legislative focus. Eleven states – Connecticut, Hawaii, Illinois, New York, Massachusetts, Minnesota, Oregon, Rhode Island, Utah, Vermont, and Washington – introduced bills to ban flavored products. In addition, New York proposed a ban on flavored nicotine pouches, Massachusetts considered amendments to its existing flavor ban, Minnesota filed a bill to preempt local flavor bans, and Utah introduced legislation to repeal its vapor flavor ban. These actions highlight ongoing state-level leadership in flavor regulation, particularly as federal efforts stalled following the FDA’s withdrawal of the proposed menthol ban.

Premium cigar taxation drew increased attention in 2025 as rising excise rates incentivized online purchases. At least 11 states introduced legislation to cap per-cigar taxes, generally at $0.50 per unit. Louisiana enacted a temporary two-year cap of $0.50 per cigar, while Indiana increased its cap from $1.00 to $3.00 per cigar. Other states considering caps included Colorado, Hawaii, Ohio, Massachusetts, Mississippi, New York, North Dakota, and Wisconsin. Washington considered repealing its tax cap entirely. These initiatives aim to preserve the competitiveness of local retailers in the premium cigar market.

Looking ahead to 2026, states are expected to continue active engagement in tobacco policy as consumers move away from traditional cigarettes toward vapor products, nicotine pouches, and other alternative nicotine products. Key focus areas will include taxation of emerging nicotine categories, FDA-linked product eligibility, flavor regulation, and premium cigar taxation to maintain competitiveness with online sales. Legislative momentum in these areas suggests another active year for state tobacco policy with broad implications for manufacturers, retailers, and public health stakeholders.

November 2025: Denver flavor ban is re-affirmed by voters

Denver’s flavored tobacco sales ban originated in December 2024, when the City Council approved legislation prohibiting the sale of flavored nicotine products, including menthol cigarettes and vapes. Opponents, led by vape shop owners and industry groups, gathered thousands of petition signatures to put the measure – known as Initiative 310 – to a citywide vote. The referendum, held on November 4 2025, gave voters the final say on whether to uphold or repeal the ban. With nearly 70% voting in favor, residents reaffirmed the council’s decision.

With voter approval secured, enforcement of the ban will begin in January 2026. Denver’s Department of Public Health and Environment will contact all 575 affected retailers to guide compliance and remove flavored products from shelves. City inspectors will oversee implementation, while both sides prepare for the broader consequences: public-health advocates expect youth vaping rates to decline, whereas business owners warn of severe financial strain and possible relocations. The outcome will serve as a model for other Colorado municipalities considering similar restrictions.

October 2024: California puts in place new rules to strengthen the ban on flavored tobacco products

Two California state bills, Assembly Bill AB 3218 and Senate Bill SB 1230, are signed into law by the Governor. The new rules, which will take effect January 1, 2025, aim to strengthen the existing ban on flavored tobacco products by outlawing non-menthol coolants, like WS-3 and WS-23, and online sales of flavored vapes and nicotine pouches. 

Following California’s December 2022 menthol ban, RJ Reynolds (BAT) and ITG (Imperial Brands) introduced non-menthol cigarettes offering “a new fresh twist” and “a taste that satisfies the senses”. The records of ingredients show that Camel Crisp and Newport EXP contain a synthetic cooling agent called WS-3. E-cigarette makers are also known to add synthetic cooling agents, WS-3 and WS-23, to vaping liquids. 

The new rules change the definition of nicotine to include synthetic nicotine and nicotine analogs and change the definition of a characterizing flavor to include synthetic coolants. Moreover, new rules require the creation of a master unflavored tobacco list of legal products to be published by the Attorney General (AG) no later than December 31, 2025. This precaution is similar to the PMTA Registry Bills in other States. Unlisted products can not be sold in California, including the online channels, after the publication of the AG’s list.

The AG is given the power to exclude from the list any vape not authorized by the FDA or not certified as unflavored under penalty of perjury. Moreover, state agencies and state and local law enforcement agencies are authorized to seize products that violate the law and impose on-the-spot fines for each seized item. Retailers selling unlisted products will be face instant fines ranging from US$2,000 to US$50,000. Moreover, local governments preserve the right to pass laws more restrictive than the State.

April 2024: Governor Vetoes Vermont’s Proposed Flavored Tobacco Ban, Citing Policy Inconsistencies

The Vermont Governor has officially vetoed Senate Bill 18 (S.18), a piece of legislation that aimed to implement a comprehensive ban on the sale of flavored tobacco products and e-liquids across the state. The decision brings a sudden halt to a multi-year effort by public health advocates to pull flavored vapes and menthol cigarettes from retail shelves.

In a letter to the General Assembly explaining his decision, the Governor noted that he struggled with the bill, ultimately finding it hypocritical and out of step with how Vermont regulates other adult substances, such as legal cannabis and flavored alcoholic beverages. While acknowledging an obligation to protect children, he argued that the state must balance that duty with honoring the rights and freedoms of adults to make individual choices. He also raised practical concerns, stating that a localized ban would simply drive consumers to purchase these widely available products online or right across the border in New Hampshire.

The veto came despite the legislation successfully working its way through both chambers of the state legislature. The bill previously passed the Senate with an 18-11 vote and cleared the House with an 83-53 vote. Crucially, neither of these margins meets the two-thirds majority required to successfully override a gubernatorial veto, leaving legislative leaders without a clear path forward to enact the ban over the Governor’s objections.

Had the bill been signed, Vermont would have joined a very short list of states with similar laws. Currently, only California, which enacted its ban in December 2022, and Massachusetts, which implemented its ban in June 2020, have statewide prohibitions on flavored tobacco products. For now, Vermont’s retail market for flavored nicotine and menthol products will remain open.

March 2024: Vermont Legislature Passes Sweeping Flavored Tobacco Ban; Bill Now Heads to Hesitant Governor

The Vermont State Legislature has officially passed Senate Bill 18 (S.18), a landmark piece of public health legislation that would implement a near-total ban on flavored tobacco and nicotine products across the state. The bill, which passed both chambers after a multi-year legislative push, has now been sent to the desk of Governor. However, its ultimate survival remains highly uncertain as the Governor openly weighs the significant economic repercussions. If signed into law, the ban is slated to take effect on January 1, 2026.

S.18 targets the core of the flavored nicotine market, seeking to outlaw the sale of all flavored tobacco substitutes, e-liquids, and menthol-flavored traditional tobacco products. Under the strict language of the bill, the following items would be entirely prohibited from retail shelves: menthol cigarettes, flavored cigars, flavored traditional snuff and snus, and all flavored electronic cigarette liquids and vape devices. The bill does include a narrow exception for “Other Tobacco Products” (OTPs) that are not inhaled or traditionally associated with heavy youth marketing; non-menthol flavors, such as mint and cherry, would remain permitted for those select items.

The legislative push comes on the heels of alarming data provided by the Vermont Department of Health. According to recent state surveys, the rate of e-cigarette use among Vermonters doubled from 3% to 6% between 2016 and 2022. This youth-driven surge in vaping occurred even as traditional cigarette smoking dropped from 17% to 13% over the exact same period. Health advocates point out that the vast majority of current nicotine users rely heavily on flavors. In Vermont, nearly 90% of vapers and roughly half of traditional smokers use flavored products. Supporters argue that eliminating these flavors is the single most effective way to break the cycle of youth nicotine addiction.

However, the Governor has expressed severe reservations regarding the fiscal reality of the ban. The Joint Fiscal Office has warned that eliminating such a massive portion of the market could cost the state millions of dollars annually in lost tobacco tax revenues – at a time when Vermont’s budget is already facing tight constraints.

While public health coalitions are heavily lobbying the Governor to sign the bill, the broader public is starkly divided. State health data reveals a profound disconnect between users and non-users: 53% of all Vermont adults surveyed support outlawing the sale of flavored tobacco products statewide. Conversely, among current tobacco users, only 24% support the ban, with many arguing that it will restrict adult freedoms or force them to buy products out-of-state in neighboring New Hampshire. The Governor has a limited window to sign S.18 into law, allow it to pass without his signature, or issue a veto that would send it back to Montpelier for an override attempt.

March 2024: Michigan Lawmakers Weigh Sweeping Tobacco Ban and Major Tax Hikes in New Legislative Push

A major legislative battle is shaping up in the Michigan State Capitol as lawmakers consider a pair of aggressive bills aimed at drastically curbing tobacco and nicotine use across the Great Lakes State. If passed, the sweeping proposals would fundamentally reshape Michigan’s tobacco market, imposing one of the strictest flavor bans in the country alongside massive tax hikes on cigarettes, vaping products, and smokeless tobacco.

The two-pronged legislative assault is contained within Senate Bill 648 and Senate Bill 649, both of which are currently pending committee review.

Senate Bill 648: A Total Flavor Ban

The first piece of legislation, SB 648, takes direct aim at flavored nicotine products. The bill seeks to completely ban the sale of all flavored tobacco products statewide. Crucially, this prohibition does not stop at flavored e-cigarettes or fruit-flavored vape juices; it also includes menthol cigarettes.

Public health advocates have long pushed for a menthol ban, arguing that the flavor masks the harshness of tobacco and makes it easier for youth to pick up smoking habits. However, the inclusion of menthol is expected to face fierce resistance from retailers and industry groups. Menthol products are deeply entrenched in the state’s market, currently accounting for a staggering 41% of the total cigarette volume in Michigan. Critics argue a total ban would not only decimate retail revenues but could also inadvertently fuel a massive illicit underground market.

Senate Bill 649: Steep Tax Increases Across the Board

While SB 648 handles prohibitions, SB 649 focuses on the pocketbook, introducing a steep new tax structure designed to price consumers out of nicotine habits.

The bill outlines a comprehensive overhaul of Michigan’s tobacco tax rates:

Cigarettes: A tax increase of $1.50 per pack. This would push Michigan’s cigarette tax from the current $2.00 up to $3.50 per pack, placing the state among the highest-taxed jurisdictions for smokers in the Midwest.

Snuff and Smokeless Tobacco: A 15% increase based on the wholesale price.

Vapes and Nicotine Pouches: The imposition of a brand-new 57% tax on the wholesale price. Currently, electronic smoking products and modern oral nicotine pouches (like Zyn) enjoy a lower tax burden compared to traditional combustible cigarettes. SB 649 aims to close that gap entirely.

Proponents of the twin bills argue that the combined force of a flavor ban and a tax hike is the most effective way to reduce smoking rates, lower state healthcare costs, and prevent a new generation from becoming addicted to nicotine.

Conversely, convenience store owners and tobacco advocacy groups are sounding the alarm. They warn that skyrocketing prices and product bans will push Michigan consumers across state lines to Ohio or Indiana – where taxes are lower and flavors remain legal – costing the state millions in vital tax revenue while doing little to actually curb consumption. As both bills sit pending in the Senate, lawmakers can expect heavy lobbying from both public health coalitions and tobacco industry representatives in the coming weeks.

Tags:

Call Request:
Reports

We will reach out to you within 24 hours to discuss your request. Please note that we only respond to requests with a valid business e-mail address
Disclaimer: The content in our Market Pulse section is/shall not be construed as investment advice. It is for informative purposes only and does not take into account the individual needs, investment objectives and specific financial circumstances. Any action taken upon the information in our Market Pulse section is strictly at the reader’s own risk. We assume no responsibility or liability for the actions taken. Moreover, we also assume no responsibility or liability for any errors or omissions in our content – which is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness or timeliness even if we only depend on the infromation sources that are believed to be accurate.

Consultation
Session Request

We will reach out to you within 24 hours to discuss your request. Please note that we only respond to requests with a valid business e-mail address