The Iowa Senate has voted to establish a new state tax on vaping products — the electronic cigarettes that heat liquid that turns into vapor that’s inhaled.
Senator Kara Warme, a Republican from Ames, said the first three million dollars of revenue from the tax would go toward pediatric cancer research at the University of Iowa. “I understand that the level of tax we’re looking at here is not likely to be enough to deter usage, but it is enough to create this investment in pediatrict cancer research that we all want to get behind, with any remaining funds going to the Health Care Trust Fund for funding Medicare in our stae, which again is impacted by the cost of these addictive products.”
The tax rate is far less than the state tax on cigarettes. Senator Janet Petersen, a Democrat from Des Moines, favors a significant hike in taxes for all nicotine products sold in Iowa. “We’re still in the very beginning of the budgeting process. There’s still time for a better bill to get more money to pediatric cancer sooner. I know the House has done that,” Petersen said. “I do believe that we need an onging funding stream for this and more so, beyond pediatric cancer but for all different types of cancer that Iowans are facing right now.”
The Senate passed the bill on a 44-0 vote this week. Also this week, the House voted to set aside $3 million a year for research into pediatric cancer research and clinical trials of treatments geared specifically for children. The House plan does not include a tax increase. The Senate bill would also create a new tax on nicotine patches and gum.