STATE OF OKLAHOMA

2nd Session of the 54th Legislature (2014)

HOUSE BILL 2989	By:	McPeak

AS INTRODUCED

An Act relating to revenue and taxation; stating purpose of tax levy; defining terms; imposing excise tax upon tangible personal property related to vapor products; requiring reports; providing excise tax levy in lieu of sales tax levy; apportioning revenue to the General Revenue Fund of the State Treasury; restricting sales of vapor products containing nicotine unless acquired from a licensed wholesaler; providing for codification; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1354.101 of Title 68, unless there is created a duplication in numbering, reads as follows:
The purpose of the levy imposed pursuant to Section 3 of this act is to provide revenue for the general functions of state government.
SECTION 2.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1354.102 of Title 68, unless there is created a duplication in numbering, reads as follows:
As used in this act, "vapor product" means a noncombustible product containing nicotine that employs a mechanical heating element, battery, or electronic circuit, regardless of shape or size, that can be used to heat a liquid nicotine solution contained in a vapor cartridge as well as any vapor cartridge containing liquid nicotine solution that can be used with or in a vapor product and electronic cigarettes, electronic cigars, electronic cigarillos and electronic pipes.  "Vapor product" does not include any product regulated by the United States Food and Drug Administration under Chapter V of the Federal Food, Drug, and Cosmetic Act.
SECTION 3.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1354.103 of Title 68, unless there is created a duplication in numbering, reads as follows:
There shall be imposed an excise tax of thirty percent (30%) upon the sale of any vapor product, including supplies, refills or any other tangible personal property used directly or indirectly for the inhalation of vapor from a vapor product.
SECTION 4.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1354.104 of Title 68, unless there is created a duplication in numbering, reads as follows:
The excise tax imposed pursuant to the provisions of Section 3 of this act shall be in lieu of the sales tax levied by Section 1354 of Title 68 of the Oklahoma Statutes.
SECTION 5.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1354.105 of Title 68, unless there is created a duplication in numbering, reads as follows:
Each vendor making sales of tangible personal property subject to the levy imposed by Section 3 of this act shall remit the excise tax in the same manner as provided by law for the collection and remittance of state sales tax.
SECTION 6.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1354.106 of Title 68, unless there is created a duplication in numbering, reads as follows:
The revenue derived from the levy of tax imposed pursuant to Section 3 of this act shall be apportioned to the General Revenue Fund of the State Treasury.
SECTION 7.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1354.107 of Title 68, unless there is created a duplication in numbering, reads as follows:
All vapor products containing nicotine shall be distributed only by a licensed wholesaler.  It shall be unlawful for any business to make retail sales of vapor products containing nicotine unless the products were acquired from a licensed wholesaler as provided by law.
SECTION 8.  This act shall become effective July 1, 2014.
SECTION 9.  It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.

54-2-9291	MAH	01/14/14