Vape and Hemp Vending in Michigan: Compliance Guide

Vending Alternative Nicotine, Vapes, CBD, and Hemp in Michigan: Full Compliance Guide

Everything you need to know about legally operating vending machines in Michigan including licensing, age verification, and location restrictions.

The information provided here is for informational purposes only and should not be construed as legal advice. We encourage you to consult with your own attorney regarding any legal matters and to verify all details independently. Any reliance on this information is at your own risk.

722.644 Definitions

(a) "Alternative nicotine product" means a noncombustible product containing nicotine that is intended for human consumption, whether chewed, absorbed, dissolved, or ingested by any other means. Alternative nicotine product does not include a tobacco product, a vapor product, food, or a product regulated as a drug or device by the United States Food and Drug Administration under 21 USC 351 to 360fff-7.
(b) "Minor" means an individual who is less than 21 years of age.
(c) "Person who sells vapor products or alternative nicotine products at retail" means a person whose ordinary course of business consists, in whole or in part, of the retail sale of vapor products or alternative nicotine products.
(d) "Person who sells tobacco products at retail" means a person whose ordinary course of business consists, in whole or in part, of the retail sale of tobacco products subject to state sales tax.
(e) "Public place" means a public street, sidewalk, or park or any area open to the general public in a publicly owned or operated building or public place of business.
(f) "Tobacco product" means a product that contains tobacco and is intended for human consumption, including, but not limited to, a cigarette, noncigarette smoking tobacco, or smokeless tobacco, as those terms are defined in section 2 of the tobacco products tax act, 1993 PA 327, MCL 205.422, and a cigar.
(g) "Use a tobacco product, vapor product, or alternative nicotine product" means to smoke, chew, suck, inhale, or otherwise consume a tobacco product, vapor product, or alternative nicotine product.
(h) "Vapor product" means a noncombustible product that employs a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means, regardless of shape or size, that can be used to produce vapor from nicotine or any other substance, and the use or inhalation of which simulates smoking. Vapor product includes an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device and a vapor cartridge or other container of nicotine or other substance in a solution or other form that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device. Vapor product does not include a product regulated as a drug or device by the United States Food and Drug Administration under 21 USC 351 to 360fff-7.

Bullet Points and Implications

Under current Michigan statutes, e‑cigarettes (also referred to as vapor products) are not included in the statutory definition of “tobacco products.”
Implication: Because they are not defined as “tobacco products,” certain rules that apply specifically to tobacco (such as tobacco-specific excise taxes) do not automatically apply to vapor products. Hence, vape vending and Zyn vending machines are not governed under Michigan tobacco statutes.
No Excise Tax on E‑Cigarettes: Michigan does not impose a state excise tax on e‑cigarettes or vapor products. Traditional tobacco products (e.g., cigarettes, cigars) are taxed, but this currently does not extend to e‑cigarettes.

Retail Licensing

No Statewide Retail License Required: Michigan does not require a general retail license or permit to sell e‑cigarettes or vapor products at the state level (the wholesale level does require licensing). Please be sure to check your country and municipalities since they may have additional requirements or bans in effect.

Placement and Supervision of Vending Machines

Sales Restricted to 21 and Older: Michigan law mirrors federal law by setting the minimum legal age at 21 years for purchasing, possessing, or using e‑cigarettes, vapor products, and alternative nicotine products.
Criminal Penalties for Underage Sales: Selling to individuals under 21 is a misdemeanor offense, with fines escalating for repeat violations.

Taxes: Michigan does not impose any additional tax on electronic e-Cigarettes or electronic nicotine delivery systems (ENDS) or other vapor products. Michigan also does not impose additional tax on CBD or hemp products. Hence, check out VapeTM's CBD and Hemp Vending Machine Collection

Age Verification, Signage Requirements, and Penalties

722.641 Selling, giving, or furnishing tobacco products, vapor products, or alternative nicotine products to minor prohibited; misdemeanor; penalty; sign required; copies of sign; affirmative defense; notice; rebuttal testimony; notice of rebuttal; exception; identity and age verification requirements.

Sec. 1.

(1) A person shall not sell, give, or furnish a tobacco product, vapor product, or alternative nicotine product to a minor, including, but not limited to, through a vending machine. A person who violates this subsection or subsection (8) is guilty of a misdemeanor punishable by a fine as follows:
- (a) For a first offense, not more than $100.00.
- (b) For a second offense, not more than $500.00.
- (c) For a third or subsequent offense, not more than $2,500.00.

(2) A person who sells tobacco products, vapor products, or alternative nicotine products at retail shall post, in a place close to the point of sale and conspicuous to both employees and customers, a sign produced by the department of health and human services that includes the following statement:
- "The purchase of a tobacco product, vapor product, or alternative nicotine product by a minor under 21 years of age and the provision of a tobacco product, vapor product, or alternative nicotine product to a minor are prohibited by law. A minor who unlawfully purchases or uses a tobacco product, vapor product, or alternative nicotine product is subject to criminal penalties."
(3) If the sign required under subsection (2) is more than 6 feet from the point of sale, it must be 5-1/2 inches by 8-1/2 inches and the statement required under subsection (2) must be printed in 36-point boldfaced type. If the sign required under subsection (2) is 6 feet or less from the point of sale, it must be 2 inches by 4 inches and the statement required under subsection (2) must be printed in 20-point boldfaced type.

(4) The department of health and human services shall produce the sign required under subsection (2) and have adequate copies of the sign ready for distribution to licensed wholesalers, secondary wholesalers, and unclassified acquirers of tobacco products and to persons who sell vapor products or alternative nicotine products at retail free of charge. Licensed wholesalers, secondary wholesalers, and unclassified acquirers of tobacco products shall obtain copies of the sign from the department of health and human services and distribute them free of charge, upon request, to persons who sell tobacco products and who are subject to subsection (2). The department of health and human services shall provide copies of the sign free of charge, upon request, to persons subject to subsection (2) who do not purchase their supply of tobacco products from wholesalers, secondary wholesalers, and unclassified acquirers of tobacco products licensed under the tobacco products tax act, 1993 PA 327, MCL 205.421 to 205.436, and to persons who sell vapor products or alternative nicotine products at retail.

(5) It is an affirmative defense to a charge under subsection (1) that the defendant had in force at the time of arrest and continues to have in force a written policy to prevent the sale of tobacco products, vapor products, or alternative nicotine products, as applicable, to individuals less than 21 years of age and that the defendant enforced and continues to enforce the policy. A defendant who proposes to offer evidence of the affirmative defense described in this subsection shall file notice of the defense, in writing, with the court and serve a copy of the notice on the prosecuting attorney. The defendant shall serve the notice not less than 14 days before the date set for trial.

(6) A prosecuting attorney who proposes to offer testimony to rebut the affirmative defense described in subsection (5) shall file a notice of rebuttal, in writing, with the court and serve a copy of the notice on the defendant. The prosecuting attorney shall serve the notice not less than 7 days before the date set for trial and shall include in the notice the name and address of each rebuttal witness.

(7) Subsection (1) does not apply to the handling or transportation of a tobacco product, vapor product, or alternative nicotine product by a minor under the terms of the minor's employment.

(8) Before selling, offering for sale, giving, or furnishing a tobacco product, vapor product, or alternative nicotine product to an individual, a person shall verify that the individual is at least 21 years of age by doing 1 of the following:
- (a) If the individual appears to be less than 27 years of age, examining a government-issued photographic identification that establishes that the individual is at least 21 years of age.
- (b) For sales made by the internet or other remote sales method, performing an age verification through an independent, third-party age verification service that compares information available from a commercially available database, or aggregate of databases, that are regularly used by government agencies and businesses for the purpose of age and identity verification to the personal information entered by the individual during the ordering process that establishes that the individual is 21 years of age or older.

To verify age through a third-party, VapeTM uses Apt-Pay. More information can be found here

Vape ATMs that include age-verification software controlled by a third-party can be purchased here

Steps to Getting Started

1. Set up a business or LLC

Obtain the Form: Visit the LARA Corporations Online Filing System or search for “Michigan LLC Articles of Organization” on the LARA website.
Complete the Form: Provide basic information such as the name of your LLC, the purpose, and the resident agent’s information.
Submit and Pay Fees: You can file online or by mail. The standard filing fee is typically around $50 for an LLC in Michigan (subject to change). Online filing is usually faster.

2. Obtain an EIN or Tax ID

You will likely need a Federal Employer Identification Number (EIN) from the IRS (apply online at irs.gov). This is required if you have employees or more than one member in the LLC (and often required for opening a bank account or other financial matters).

3. Register for Sales Tax

Michigan Treasury Online (MTO): You can register for a sales tax license and other applicable business taxes at Michigan Treasury Online.
Form 518: Alternatively, you can fill out Form 518 (Registration for Michigan Taxes) if you prefer paper applications, but online registration is usually faster and more convenient.

4. Collecting & Remitting Sales Tax

Collect at the Time of Sale: If you’re selling taxable items or services, include the Michigan sales tax (6%) in your customer’s bill. You can pass this on to the customer through VapeTM Software.
File and Pay: You file periodic sales tax returns (typically monthly, quarterly, or annually, depending on your volume of sales) through MTO.
Due Dates: The frequency and deadlines for returns depend on your total tax liability; the state will assign a filing frequency once you register.

Note: Since you will be reselling vapes or electronic cigarettes, you file for tax exemption on the wholesale purchase so you don't pay sales tax "twice".