The Tennessee legislature has passed a bill that imposes new taxes on vape products and requires a registry of FDA-approved vaping devices. The House approved the Republican-backed bill on Thursday, which includes several amendments accepted by the Senate.
Key Provisions
- Taxation:
- 10% tax on the wholesale cost price of vape products
- 12.5% of the tax revenue allocated to the state treasurer for the Alcoholic Beverage Commission
- Product Directory:
- Creation of a public directory of FDA-approved vaping products
- Directory to be updated monthly and publicly available by January 1, 2026
- Ban on the sale of products not listed in the directory
- FDA Approval Requirement:
- Ban on products not FDA-approved or pending FDA approval
- Manufacturers must certify FDA approval or review status by August 1
- Certification must confirm the product is made or blended in the U.S. at an FDA-registered facility
- Advertising Restrictions:
- Prohibition of vape product billboards within 1,000 feet of childcare centers, churches, public parks, or schools
Legislative Intent and Next Steps
Senator Ken Yager and Representative David Hawk introduced the bill to curb youth vaping and ensure product safety. Despite concerns from vape shop owners about potential negative impacts on businesses, the bill is now headed to Governor Bill Lee for final approval.