HB 2832 Summary

• Imposes a 50% luxury tax on electronic nicotine delivery system (ENDS) products based on the distributor's list price, effective for taxable periods beginning after December 31, 2024.

• Directs tax revenue from ENDS products to be split: 80% to the state general fund and 20% to the early childhood development and health fund established under section 8-1181.

• Establishes licensing and regulatory requirements for electronic nicotine delivery system distributors, including application fees, record-keeping obligations, and compliance with department of revenue rules similar to tobacco product distributors.

• Applies existing tobacco tax enforcement provisions to ENDS products, including seizure and forfeiture authority, penalties for non-compliance, and criminal provisions for violations.

• Requires the department of revenue to be exempt from standard rulemaking procedures for one year following enactment to implement the new tax system.