South CarolinaSouth Carolina taxes heated cigarettes and nicotine used in vapes
South Carolina law sets taxes on heated cigarettes and nicotine material used in vapes, with the money collected going to the state’s Medicaid Reserve Fund.
What it does
Heated cigarettes carry a tax of 2.1375 cents each. Money collected from this tax goes to the South Carolina Medicaid Reserve Fund.
Nicotine material used in vapes carries a tax of 5 cents per milliliter. Money collected from this tax goes to the South Carolina Medicaid Reserve Fund.
Argument forSending these tax receipts to the Medicaid Reserve Fund could help South Carolina keep money available for Medicaid.
Argument againstThese taxes could raise buyers’ costs for heated cigarettes and nicotine vape products if sellers pass the taxes along.
More detail
South Carolina taxes each cigarette made for heating at 2.1375 cents. The tax covers cigarettes containing tobacco or a tobacco substitute that are made for heating under ordinary use. Covered rolls must be wrapped in something other than tobacco leaf, or weigh no more than three pounds per 1,000 and be likely to be offered or bought as cigarettes. Tax receipts must go to the South Carolina Medicaid Reserve Fund. The act states an October 1, 2025, start date, while the legislative action history lists May 19, 2026, as the effective date.
South Carolina taxes nicotine material used in vapor products and electronic cigarettes at 5 cents per milliliter. The tax covers nicotine liquid and other nicotine-containing material consumed in vapor products and electronic cigarettes. The material must contain nicotine and be used up as the vape product is used. Tax receipts must go to the South Carolina Medicaid Reserve Fund. The act states an October 1, 2025, start date, while the legislative action history lists May 19, 2026, as the effective date.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 5Effective date 05/19/2026Latest
- Jun 3Act No. 234
- May 19Signed By Governor Henry McMasterBecame Law
- May 15Ratified R 247
- May 14Roll call Yeas-91 Nays-18
- Vote recorded Concur in Senate Amendments. Result: pass.Lower
- May 14Concurred in Senate amendment and enrolledTo Governor
- May 13Roll call Ayes-36 Nays-4
- Vote recorded 3rd Reading. Result: pass.Upper
- May 13Read third time and returned to House with amendmentsPassed 2nd Chamber
- May 13AmendedMajor
- May 13Committee Amendment AdoptedMajor
- May 12Read second timeMinor
- Mar 18Committee report: Favorable with amendment FinanceMinor
- 2025
- May 6Referred to Committee on FinanceMinor
- May 6Introduced and read first timeMinor
- May 2Read third time and sent to SenatePassed 1st Chamber
- May 1Unanimous consent for third reading on next legislative day
- Vote recorded Passage of Bill. Result: pass.Lower
- May 1Roll call Yeas-93 Nays-6
- May 1Read second timeMinor
- May 1AmendedMajor
- Apr 30Committee report: Favorable with amendment Ways and MeansMinor
- Apr 24Member(s) request name added as sponsor: Yow
- Apr 9Member(s) request name added as sponsor: Hosey
- Apr 3Referred to Committee on Ways and MeansMinor
- Apr 3Introduced and read first timeIntroduced
Taxes & BudgetHealthcare