A legislative committee has advanced House Bill 968, a measure co-sponsored by State Rep. David Hawk (R-Greeneville), that seeks to impose new taxes on vapor products and restrict sales to items approved or under review by the U.S. Food and Drug Administration (FDA). The bill passed the Government Operations Committee on Monday by a 12–1 vote.
Under the proposal, disposable vape products would be taxed at 7 cents per milliliter, while refillable devices would incur a tax of 10% of the wholesale cost. Proponents say the restrictions will help ensure that only FDA-sanctioned products are available, thereby keeping vapor products out of the hands of minors.
Speaking before the committee, Rep. Hawk said, “The goal of this bill is to keep vapor products out of children’s hands.”
Critics of the measure contend that the new restrictions could force many vape shops to close, potentially driving consumers back to traditional tobacco products.
The bill is now headed to the House Finance, Ways, and Means Committee for further consideration. Meanwhile, the Senate version, sponsored by Sen. Chuck Yager (R-Kingston), is scheduled to be discussed by the Senate Finance, Ways, and Means Committee on Tuesday.
Stakeholders across the nicotine industry are closely monitoring the progress of House Bill 968, as its outcome could significantly shape the regulatory landscape for vapor products in the state.
