Ohio Vape Vending Machine Compliance Guide

Ohio Vape Vending Machine Compliance Guide

At VapeTM, we’re committed to ensuring compliant and responsible vending solutions for vape products. If you're planning to operate a vape vending machine in Ohio, it's essential to follow state laws and obtain the necessary permits. Below is a detailed guide covering all requirements for lawful operations.

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.

1. Legal Requirements for Vape Vending Machines in Ohio

Ohio law mandates that vending machines dispensing vape products must be placed in areas restricted to those 21 years and older or under employee supervision. According to Ohio Revised Code § 2927.02(C):

"No person shall sell or distribute in this state cigarettes, other tobacco products, or alternative nicotine products by or from a vending machine, except in the following locations:

• In a business, office, or place not open to the general public;
• In areas where individuals under 21 are not generally permitted;
• When the machine is in plain view and within control of an employee or owner, inaccessible to the public when the establishment is closed.

2. Definition of Vapor Products in Ohio

Ohio defines vapor products separately from traditional tobacco. As stated in Ohio Revised Code § 2927.02(A)(2):

"Alternative nicotine product means...a vapor product or any other product or device that contains nicotine that can be ingested by chewing, smoking, absorbing, dissolving, or inhaling."

3. Purchasing from Registered Distributors & Excise Tax

Retailers in Ohio must source vape products from distributors registered with the Ohio Department of Taxation. You can find a list of licensed distributors here. VapeTM can also facilitate you and is an Ohio registered Vapor Distributor.

Ohio imposes an excise tax of $0.10 per ml or gram of vapor product. Distributors must remit this tax, which is passed on to customers.

4. Sales and Use Tax Permit & Transient Vendor's License

To operate in Ohio, you generally need a Sales and Use Tax Permit and a Transient Vendor's License (if you plan to sell at temporary or moveable locations). Below are the steps to obtain these registrations.

4.1 Set Up a Business or LLC in Ohio

• Obtain the form: Visit the Ohio Secretary of State website or Ohio Business Central for “Ohio LLC Articles of Organization.”
• Complete the form: Provide basic information such as the name of your LLC, its purpose, and the statutory agent (Ohio’s equivalent of a resident agent).
• Submit and pay fees: You can file online or by mail. The standard filing fee for an LLC in Ohio is $99 (subject to change). Online filing is usually faster.

4.2 Obtain an EIN (Employer Identification Number)

• You will likely need a Federal EIN from the IRS. Apply online at: https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein.

4.3 Apply for an Ohio Transient Vendor’s License

If you plan to conduct sales at temporary locations, you must apply for a Transient Vendor’s License. The Ohio Department of Taxation provides Form ST ST-1T (Transient Vendor Application) at: https://tax.ohio.gov/static/webview/view1/UIExtension/1/pdf-view.html?filename=forms/sales_and_use/Applications2019/st_st1t_fi.pdf .

• Fill out all requested information, including your business name, address, and EIN.
• Check the form or the Ohio Department of Taxation website for any associated fee.
• Submit by mail or via the Ohio Business Gateway. Once processed, you’ll receive your license number.

5. Collecting & Remitting Sales Tax

Collect at the time of sale: If you’re selling taxable products or services, include Ohio sales tax (which starts at 5.75% for the state portion; local counties may add additional percentages). You can pass this on to the customer through your point-of-sale system (e.g., VapeTM Software).

• File and pay: File periodic sales tax returns (monthly, quarterly, or annually—depending on your volume of sales) through the Ohio Business Gateway.
• Due dates: The state will notify you of your filing frequency based on your sales. The frequency and deadlines for returns depend on your total tax liability.

6. Vapes/E-Cigarettes & Wholesale Purchases (Resale Certificate)

If you plan to resell vapes, e-cigarettes, or accessories, you can avoid double taxation on wholesale purchases by providing your vendor with a resale certificate:

Obtain the Certificate: You can use an Ohio Resale Certificate from sources such as this PDF. Present it to your wholesaler so they do not charge you sales tax at the time of purchase.