Vapes and alternative nicotine products would have a new tax, under a bill (SF 2480) headed to the governor’s desk.
It would levy a 5 cent tax on things like nicotine pouches and gum and it would tax vape products at 5 cents per milliliter of nicotine. The bill would send up to $3 million each year to pediatric cancer research at the University of Iowa.
The House passed the bill 67 to 18 with a mix of Democrats and Republicans on both sides of the vote.
Democrats who were against the bill said the tax isn’t high enough to deter people from using nicotine and vape products. And they criticized the proposal for tying the research funding to products that increase chances of lung cancer.
“Doesn't it seem odd that when we intend to tax a particular industry, that that industry offers to write their own taxing bill?” said Rep. Austin Baeth, D-Des Moines. “Well, why would that be? Perhaps because this tax does nothing to their bottom line.”
Rep. Brent Siegrist, D-Council Bluffs, said he’d like to work on raising the tax more next year, but that the proposal still moves the needle.
“I'd love to be bold sometimes, but fact the matter is this is a step forward,” Siegrist said. “This will help. It'll help with cancer research. It'll help with some kids probably not buying because they can't afford it.”