Kentucky

Background

State lawmakers approved House Bill (HB) 351 in April 2020 which established a tax on vapor products.

Taxable base and rates

The provision introduced a vapor products tax on closed vaping systems at the rate of $1.50 per cartridge. The rate on open vaping systems is 15% of the actual price at which the distributor sells the product. Taxable items include both nicotine and non-nicotine products as provided in the following definitions.

Legislators affirmed that the tax was designed to reduce consumption of vapor products and increase revenue.

Effective date

The new vapor products tax went into effect on 1 August 2020.