Kansas

Background: In 2015 the State legislature approved a tax of 20 cents per milliliter of “consumable material in e-cigarettes”. However, implementation of the tax was postponed from its original 1 January 2016 target date because certain regulations to collect the tax had not been finalized by the Kansas Department of Revenue.

In addition, proponents of the vaping industry claimed that the high rate would force consumers to buy products on-line or in neighboring states. Sympathetic lawmakers agreed to push back the implementation of the tax until January 2017, a target that was not met.

In June, the House approved HB 2230, which contained provisions relating to the cigarette and tobacco products act including licenses and remittances of taxes. The bill also amended the inoperative tax approved in 2015 and lowered the tax from $0.20 to $0.05 per milliliter of consumable materials for electronic cigarettes.

Consumable material is defined in the legislation as “any liquid solution or other material that is depleted as an electronic cigarettes is used.”

Governor Sam Brownback signed the bill into law on June 15. The lower rate is applied as of July 1, 2017.