Tennessee’s Bill to Establish FDA-Approved Vape Products Registry and Add Tax

Tennessee vape tax non-FDA-approved vape ban

The Tennessee House is set to discuss a bill that would impose a tax on vape products and establish a registry of FDA-approved vaping devices. The proposed legislation, HB 0968, aims to curb vaping among teenagers and ensure the safety of vaping products sold in the state.

Key Provisions of the Bill

The bill, introduced by Republican lawmakers Senator Ken Yager and Representative David Hawk, includes several key provisions:

  1. A $0.07 per milliliter tax on disposable vapes and a 10% tax on refillable vape products.
  2. Creation of a product directory listing all types of vaping products sold in the state, which would be made publicly available starting Jan. 1, 2026.
  3. A ban on the sale of products not included in the directory or not authorized by the FDA.
  4. A requirement for vape product manufacturers to provide the Department of Revenue with proof of FDA approval or pending review by August 1, 2025, and every year thereafter.

Concerns from Vape Shop Owners

While the bill’s sponsors argue that it will help keep vapes away from teenagers and ensure the safety of vaping devices, some vape shop owners believe it could have unintended consequences. Phil Harrell, owner of two vape shops in Knoxville, expressed concerns that the bill could put his businesses and others like them out of operation.

Harrell, who employs 10 workers across his two locations, stated that most vaping stores in the area already take steps to ensure they only stock FDA-approved brands. He argued that the bill’s provisions would create a monopoly on the e-cigarette market for tobacco companies, with legislators protecting their interests.

Existing Measures and Potential Revenue

Harrell’s store already requires customers to be 21 years or older to enter, and employees check IDs to verify age. As a member of the Tennessee Smoke Free Association, Harrell has supported raising the age requirement for purchasing vape products to 18 and later to 21. He also expressed support for the taxation of vaping products.

According to a fiscal note on the bill, the proposed tax could generate over $16 million in revenue for the state.

Next Steps

The Senate version of the bill, SB 0763, has already passed with a 24-4 vote. The House is expected to take action on the bill during its meeting on Wednesday. If the bill passes, it will be sent to the governor’s desk for final approval.

As the debate over vaping regulations continues, both lawmakers and industry stakeholders will need to find a balance between protecting public health, particularly that of teenagers, and ensuring the survival of small businesses in the vaping industry.

Matthew Ma
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