Top Takeaways:

• Bill 3-38, the Electronic Nicotine Delivery Systems (ENDS) Excise Tax of 2025, would license and tax vape retailers and wholesalers.
• The proposal targets youth access with stricter age verification and random inspections.
• Officials are still debating how the new excise tax would be applied across different ENDS product types.

A new bill introduced in Guam seeks to formally regulate and tax vapor products for the first time, establishing a comprehensive licensing and compliance framework for electronic nicotine-delivery systems (ENDS).

Bill 3-38, known as the Electronic Nicotine Delivery Systems Excise Tax of 2025, would create an excise tax and retail licensing program to govern vaping products, including refillable and disposable e-cigarettes. The measure was introduced by Senator Joe San Agustin, who said the goal is not to punish adult consumers but to ensure fairness and protect youth.

“This bill is not about penalizing adults who make personal choices,” San Agustin said. “It’s about protecting our young people, promoting public health, and ensuring that a profitable enterprise in Guam contributes equitably to the island’s well-being.”

The proposal calls for strict age restrictions, random inspections, and penalties for retailers caught selling to minors. It would also clearly define licensing requirements for wholesalers and retailers handling ENDS products—categories that previously lacked dedicated oversight under Guam’s existing tobacco laws.

According to Maria Lizama, director of the Department of Revenue and Taxation, Bill 3-38 marks Guam’s first attempt to formally separate ENDS products from traditional tobacco regulation. “While it is unclear what is ideal for the government of Guam, Bill 3-38 COR takes that first step toward addressing ENDS products as a separate group,” she said. “And we hope that better practices will eventually emerge.”

Lizama noted that if passed, her department would develop internal systems to classify and track ENDS products distinctly from other taxable goods. “I’m not saying it’s going to be easy,” she said. “We will simply have to comply.”

Tax Classification Still Unsettled

How the new tax would be applied remains under discussion. Lizama said her team is still weighing options on whether to tax disposables, refillables, and heating elements separately or uniformly.

“It’s a complex issue,” she explained. “Our initial thoughts were to just do an across-the-board [tax]—whether it’s the refillable part of it, whether it’s the one-time use, whether it’s the heating element, or other gadgets. We believe that’s probably the easiest for now, and then as we continue along, we also believe a better plan to tax will emerge.”

Governor Lou Leon Guerrero has expressed support for taxing ENDS products at the wholesale level, but some lawmakers warn that it could lead to monopolization. “The biggest problem is wholesalers wanting to control the product,” said Senator Telo Taitague. “There’s only one wholesaler on the island that actually sells vape products.”

Youth Access Concerns

Taitague said one of the most pressing issues is how easily minors can obtain vaping products from gas stations and convenience stores. She argued that requiring specialized ENDS retailers could help improve compliance.

“We’re having a lot of issues with kids getting their hands on it and going into a gas station—it’s as easy as that. It’s easy to pickpocket from the counter,” she said. “But when you’re in one of these stores [ENDS retailers], they’ve got cameras everywhere. You can’t even step in there unless you’re 18 years old.”

Lizama agreed that directing sales through specific ENDS-licensed retailers could simplify enforcement. “It certainly would make things easier for our team,” she said. “It will also perhaps provide greater control.”

If enacted, Bill 3-38 would align Guam with other U.S. jurisdictions that have introduced excise taxes and retail licensing for vaping products to strengthen oversight and raise public health funding. Lawmakers are expected to hold committee hearings in the coming weeks.