IowaIowa proposal lists cigarette tax rates, including vending machines
If approved, Iowa would collect the listed cigarette tax rates, including a separate rate for cigarettes assembled and dispensed by vending machines.
What it does
The proposal lists a 14.3-cent tax for each cigarette used or otherwise disposed of in Iowa. At that rate, the bill’s explanation gives a total tax of $2.86 on a 20-cigarette pack.
For cigarettes assembled from loose tobacco and dispensed by vending machine, the proposal lists a 6.43-cent tax per cigarette. The tax would be paid directly to the state electronically.
Argument forIf the listed rates are adopted, they could bring more tax money to the state from cigarette sales and use.
Argument againstIf adopted, the listed higher rate could make cigarettes cost more for buyers, including people who buy a pack at a time.
More detail
The proposal lists a tax of 14.3 cents for each cigarette used or otherwise disposed of in Iowa. The rate applies to cigarettes used or otherwise disposed of in Iowa for any purpose.
The proposal lists a tax of 6.43 cents for each cigarette dispensed from a vending machine. This rate applies to cigarettes assembled in a vending machine from loose tobacco and dispensed from that machine. The machine tax is paid directly to the department instead of the tax under subsection 1. Payments are sent electronically.
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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
- Apr 30Introduced, referred to Ways and Means.Introduced
Taxes & Budget