House Bill 242
149th General Assembly (Present)
Becomes effective upon date of signature of the Governor or upon date specified
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO TOBACCO PRODUCT, INCLUDING VAPOR PRODUCT, TAXATION AND LICENSING.
Vapor products, commonly known as e-cigarettes or vape products, are increasing in popularity. This Act adds a definition of vapor products to Chapter 53, Title 30 (regarding Tobacco Product Tax), includes vapor products as a type of tobacco product, and makes other amendments to the Chapter to require those who deal in vapor products to obtain licenses just like those who deal in traditional tobacco products and to impose a tax on vapor products. This Act also increases the tax on tobacco products. Specifically, this Act does the following related to tobacco product and vapor product taxes: (1) Increases the tax on cigarettes from $1.60 to $2.10 per 20 cigarette pack. (2) Increases the tax on all tobacco products other than vapor products, moist snuff, and cigarettes from 15% of the wholesale price to 30% of the wholesale price. (3) Imposes a tax of 5 cents per fluid millimeter of vapor product. (4) Increases the tax on moist snuff from 54 cents per ounce to 92 cents per ounce. This Act also increases the fees charged for retail tobacco product licenses and tobacco product vending machine licenses. These license fees were originally established in 1964. The retail license fee was last increased in 1969. The vending machine license fee was last increased in 1976. The licensing fees adopted by this Act are similar to, or less than, the fees charged by other states in the region. By including vapor products in the definition of tobacco products, vapor product wholesalers, retailers, and vending machine operators must pay license fees at the same rates as for traditional tobacco products. Section 28 establishes when the Sections of this Act take effect and how increases in existing taxes are to be handled. Finally, this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.