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2024 Session

Budget Amendments - SB30 (Floor Approved)

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Liquid Nicotine Tax (language only)

Item 3-5.19 #1s

Item 3-5.19 #1s

Adjustments and Modifications to Tax Collections
Cigarette Tax, Tobacco Products Tax and Tax on Liquid Nicotine

Language

Page 579, line 22, after "C." insert "1."

Page 579, after line 24, insert:

"2. Notwithstanding any other provision of law, the tobacco products tax imposed under § 58.1-1021.02 of the Code of Virginia shall be imposed on liquid nicotine at the rate of $0.15 per milliliter beginning July 1, 2024 for taxable sales or purchases occurring on and after such date."



Explanation

(This amendment increases the tax on liquid nicotine from $0.066 per milliliter to $0.15 per milliliter effective July 1, 2024. This generates $19.1 million in FY 2025 and $22.9 million in FY 2026 in revenue to the Health Care Fund, which offsets general fund spending for the state's Medicaid match.)