Vape Vending Machine Laws and Regulations in North Carolina

How North Carolina’s 2024 Legislation Will Affect Vape Vending Machines

With the introduction of new legislation in North Carolina in 2024, businesses involved in the sale, distribution, and storage of vapor products face a comprehensive set of regulatory requirements. For vape vending machine operators, these changes bring both new compliance hurdles and operational adjustments. Here’s a breakdown of the key impacts of this law on vape vending machines in North Carolina.

Key Aspects of the New Vapor Products Legislation in North Carolina

1. Licensing Requirements (Effective July 1, 2024)

Beginning July 1, 2024, all businesses handling vapor products in North Carolina, including those utilizing vending machines, will need a “Vapor Products License” from the North Carolina Department of Revenue (NCDOR). Specifically, vape vending machine operators must ensure each machine location complies with the following licensing requirements:

  • Wholesale Dealer Requirements: Any location where vapor products are manufactured or stored for vending machine restocking must have a Vapor Products License. This ensures products stored without excise taxation are tracked and regulated.

  • Retail Dealer Requirements: Locations using vape vending machines for delivery sales to end consumers will also need a license if they store products not subject to excise tax.

License applications must be submitted using Form B-A-2R (for existing license holders) or Form B-A-2 (for new applicants) by June 30, 2024, to avoid additional tax. Late submissions are treated as new applications, potentially leading to delays in licensing approval.

For vape vending machine operators already holding licenses for “Other Tobacco Products” (OTP), there is an option to apply separately for the Vapor Products License or cancel the OTP license if only vape products are being sold. However, this must be communicated in writing to the Department of Revenue.

2. Registry and Certification Requirements (Effective May 1, 2025)

Starting May 1, 2025, North Carolina will implement a registry for vapor products, introducing additional compliance standards for vape vending machine operators. Only products certified and listed in the state registry will be legally available for sale in North Carolina. Key elements affecting vending machine operations include:

  • Mandatory Product Listings: All vape products dispensed through vending machines must be included in the state’s vapor product registry. This means that vending machine operators must verify that each item in their machine’s inventory is approved and listed in the registry.

  • Registry Compliance Period: After the registry implementation, a 60-day compliance window will allow operators to adjust their inventory. Machines with unregistered products beyond this period may incur fines and risk losing their Vapor Products License.

By requiring that only certified products be sold, North Carolina aims to control the quality and safety of products available through vending machines, reducing the risk of distributing unregulated items to the public.

3. Penalties for Non-Compliance: Fines and License Jeopardization 

Operators of vape vending machines must be mindful of the steep penalties for failing to adhere to these new requirements:

  • Financial Penalties: Manufacturers who supply unregistered vape products to vending machine operators could face fines of up to $10,000 per non-compliant product. This risk extends to vending machine operators who inadvertently sell unregistered items, making verification essential.

  • License Revocation: For vending machine operators, the loss of a Vapor Products License due to non-compliance would effectively halt operations in North Carolina, leading to business interruptions and potential revenue loss.

Furthermore, licensed vape vending operators will need to submit monthly tax returns using Form B-A-102, regardless of whether they report taxable activity in a given month. Failure to comply with these tax reporting requirements can result in additional penalties or even license suspension.

VapeTM Key Insights into North Carolina Vape Vending:

The 2024 North Carolina vapor product law significantly impacts the operation of vape vending machines within the state. By July 2024, vending machine operators will need to secure a Vapor Products License, and by May 2025, they must ensure that all products are registered. Failure to adhere to these requirements could result in substantial fines and the suspension of vending operations. For vape vending machine operators looking to maintain seamless business operations in North Carolina, prioritizing compliance with this legislation will be crucial.

 

Current Summary of North Carolina Vape Laws for Vending Machines

The vape industry in North Carolina operates under specific legal frameworks designed to control the sale and distribution of vapor products. For businesses using vape vending machines, understanding these laws is crucial to maintaining compliance. Here’s an optimized breakdown of North Carolina’s vape regulations, especially concerning vending machine sales.

Age Restrictions and Federal Compliance

In North Carolina, it is illegal to sell vapor products to anyone under 18 years old (C. Gen. St. Section 14-313(b)). However, federal law raised the minimum age to 21 in December 2019, which takes precedence. Although North Carolina hasn’t updated its state minimum age, businesses must comply with the federal standard in most instances.

Vape Product Licensing Requirements (Effective July 1, 2024)

Beginning July 1, 2024, all retail vape dealers in North Carolina must obtain a license for each location where vapor products are stored or sold. Key requirements include:

  • License Cost: The retail license costs $10.00.
  • License Validity: Valid until June 30 of the second year following issuance.
  • License Scope: Applies to locations where non-tax paid vapor products are stored or used for remote or delivery sales.

Vape Vending Machine Requirements

Vape vending machines in North Carolina must comply with specific regulations:

  • Location Restrictions: Vape products can only be sold from vending machines in establishments exclusively accessible to those 18 and older or where the machine is closely monitored.
  • Controlled Access: The machine must be operated only by the establishment’s owner or authorized employees and should not be accessible when the establishment is closed.
  • Proof of Age: Employees must verify age if there’s a reasonable belief that the purchaser is under 18 (C. Gen. St. Section 14-313(b1)).

Additionally, a conspicuous sign near vending machines is required to state that the purchase of tobacco, vapor products, and cigarette wrapping papers by persons under 18 is strictly prohibited.

Vending Machine Tax and Compliance

For vape vending machine operators, North Carolina enforces the following tax rules:

  • Sales Tax Registration: All vending machine operators are required to register with the North Carolina Department of Revenue and remit sales tax on items sold.
  • Sales Tax Rates: Tobacco products, including vape items, sold through a vending machine are taxed on 100% of their sales price.
  • Record Keeping: Retailers must maintain records of taxable sales; failure to do so may result in taxation on the full sales price.

Excise Tax and Product Packaging Regulations

North Carolina imposes an excise tax of 5 cents per fluid milliliter on vapor products (C. Gen. St. Section 105-113.36A). Vape products containing nicotine must adhere to strict packaging guidelines:

  • Child-Resistant Packaging: All e-liquid containers must be child-resistant.
  • Nicotine Warning: Packaging must clearly state if the product contains nicotine.

Additional Compliance Resources

For specific questions about licensing requirements, operators can contact the Economic Development Partnership of North Carolina or local municipalities for city, county, or additional state requirements.

Contact Information: Economic Development Partnership of North Carolina Inc
150 Fayetteville St., Suite 1200
Raleigh, NC 27601
(919) 447-7777 | Small Business Advisor Team: (800) 228-8443

Uniformity in Local Regulations

Since August 1, 2013, no North Carolina political subdivision can enact independent regulations regarding the sale, promotion, or distribution of vapor products. This measure ensures consistent vape regulations across the state (C. Gen. St. Section 14-313(e)).

Best Practices by VapeTM for North Carolina Vape Businesses:

For vape vending machine operators, understanding and adhering to North Carolina’s updated vape laws is essential to operate legally within the state. By following licensing, tax, and operational guidelines, businesses can ensure compliance and avoid potential penalties.