HB 1423 Summary

• Establishes a 10% excise tax on the wholesale price of electronic smoking devices, effective January 1, 2024, to be paid by wholesalers and dealers.

• Adds electronic smoking devices and e-liquid to the definition of "tobacco products" under Hawaii's cigarette and tobacco tax laws.

• Allocates revenue from the electronic smoking device tax to the trauma system special fund, community health centers special fund, emergency medical services special fund, and tobacco enforcement special fund.

• Permits the tobacco enforcement special fund to be used to monitor and enforce the prohibition against selling electronic smoking devices to persons under age 21, addressing Hawaii's high youth vaping rates.

• Acknowledges Hawaii has the highest rate of e-cigarette use among middle school students and second-highest among high school students nationally, creating a youth vaping public health crisis.