Substitute House Bill 513 Summary

• Establishes statewide preemption of local tobacco and alternative nicotine product regulation, prohibiting political subdivisions from enacting conflicting standards, taxes, fees, or age requirements, with courts awarding costs and attorney fees to prevailing challengers.

• Creates bad debt refund provisions for wholesale dealers of stamped cigarettes and for distributors/vapor distributors of tobacco and vapor products, requiring debts to be uncollected for at least six months and charged off as uncollectible, with refund requests filed within three years.

• Introduces "qualifying vapor manufacturer or importer" classification for vapor product manufacturers meeting federal and state registration requirements, allowing them to sell only to vapor distributors and out-of-state persons while potentially agreeing to pay excise taxes.

• Maintains existing excise tax rates: 17% for most tobacco products, 37% for little cigars, lesser of 17% or maximum tax amount for premium cigars, and one cent per vapor volume unit for vapor products.

• Applies bad debt amendments to debts charged off as uncollectible on or after January 1, 2023, and allows qualifying vapor manufacturers/importers to transport vapor products into the state without prior tax commissioner consent.