Vape Vending Machines: Legal and Tax Compliance Guide
Disclaimer: This information is for informational purposes only and is not legal advice. Consult your attorney before relying on any legal or tax details provided.
Q: Are Vape Vending Machines Legal?
A: Vape vending machines are legal in many areas but are subject to strict Federal, State, and Local regulations to ensure compliance, particularly around age verification and product accessibility. Here's a breakdown of the legal landscape surrounding vape vending machines in the United States and the sale of nicotine-containing products in unattended smart kiosks.
Federal Regulations for Vape Vending Machines
At the federal level, vape vending machines fall under the jurisdiction of the Family Smoking Prevention and Tobacco Control Act and related FDA regulations. These laws classify e-cigarettes and vape products as tobacco products, making them subject to rules aimed at preventing underage sales. Specifically, federal law prohibits the sale of tobacco and vape products to anyone under 21.
Under federal law, specific restrictions apply to selling tobacco products, including nicotine items, via vending machines to prevent youth access. The Family Smoking Prevention and Tobacco Control Act, managed by the FDA, mandates that cigarettes, smokeless tobacco, and similar products cannot be sold in vending machines in any establishment where people under 21 might be present.
In practice, this means these vending machines can only be set up in locations restricted to adults over 21. Retailers must also check IDs for customers under 30 to verify age.
Additionally, state and local governments may have stricter rules than federal regulations, so retailers need to comply with both sets of rules to ensure they meet all legal standards
State-by-State Vape Machine Laws and Licensing Requirements
Explore comprehensive legal information on e-cigarette vending for 2024. This guide provides a detailed overview of vape vending regulations for all 50 states, including restrictions, display limitations, excise nicotine taxes , employee requirements, and licensing rules. Stay informed and ensure compliance with our go-to resource for vape vending machine laws across the U.S.
|
State |
Important Restrictions |
Limitations on Displays and Employee Requirements |
Do You Need a Permit to Sell E-Cigarettes? |
|
An employee over 21 years old must be present for anyone under 21 to sell to customers ( Section 28-11-13(a) ) |
No |
|
|
Alaska |
|
Shop premises must be restricted to 19+ ( Section 11-76-106 ) or e-cig sales must be supervised in a bar, vending machine, or club ( Section 11-76-109(d) ) |
Yes – Section 43.70.075(a) |
|
None |
No |
|
|
Arkansas |
|
An employee must supervise all sales unless the customer is using a self-service machine in a 21+ business ( Section 5-27-227(g-h) ) |
Yes – Section 26-57-214 through 215(b) |
| California |
|
No self-service machine sales allowed ( Section 22962(b)(1)(A) ) with a few exceptions. All displays must be 15 feet inside a bar entrance ( Section 22960(b)(1) ). |
Yes – Sections 22972 and 22975(a) |
|
Colorado |
|
No vending machine sales allowed ( Section 44-7-103(2) ) |
No |
|
Connecticut |
|
Self-service machines only allowed in adult-only facilities ( Section 21a-416(b) ) |
Yes – Section 21a-415(a) |
|
Delaware |
|
Self-service and vending machines only allowed in 18+ businesses ( Section 11-1119 ) |
Yes – Section 30-5301(15) |
|
District of Columbia |
|
Self-service machines allowed only in specialty tobacco stores ( Section 7-1721.04(a-b) ) and vending machine sales only allowed in 21+ businesses with liquor licenses ( Section 7-1721.04(b)(1) ) |
Yes – Section 47-2404(a) |
| Florida |
|
Self-service devices allowed only in 18+ businesses unless vending machines have a lock controlled by the store ( Section 877.112(11-12) ) |
No |
|
Vending machines allowed in locations not accessible by anyone under 18 years old. Exception for machines under employee supervision or at highway rest areas ( Section 16-12-173(e)(1) ). |
No |
|
|
Hawaii |
|
Face-to-face sales required. No vending machine or self-service devices allowed except for duty-free shops or adult-only tobacco businesses ( Section 328J-18 ). |
Yes – Section 28-164 |
|
Idaho |
|
Employees under 18 are only allowed to stock shelves and carry a customer’s purchase to their vehicle ( Section 39-5703(1-2, 5) ). Vending machines only allowed in 18+ businesses ( Section 39-5706 ). |
No |
|
Self-service machines allowed in adult-only businesses ( Section 720-677/10 ) |
No |
|
|
Self-service and vending machines allowed in 18+ businesses only ( Section 35-46-1-11.8 and 35-46-1-11.5(c) ) |
No |
|
|
Iowa |
|
Self-service or vending machines only allowed in 18+ businesses ( Sections 453A.36A(1 ) and 453A.36(6) ) |
Yes – Sections 453A.47A(1) , 453A.13(1) and 453A.36(7)(a) |
|
Kansas |
|
Self-service machines must be in 18+ businesses or have a lock-out device ( Section 79-3321(t) and(u) ) |
Yes – Section 79-3303(a) |
|
Any vending machines must be in 18+ businesses or within the employee’s line of sight ( Section 438.315(3) ) |
No |
|
|
Louisiana |
|
Self-service machines only allowed in tobacco shops or age-restricted areas ( Sections 26:910 and 26:910.1 ) |
Yes – Section 26:902(1) |
|
Maine |
|
Must be 17 years old to sell products as an employee. If under age 21 there must be a supervisor who is 21 years old ( Section 22-1555-B(1) ). Self-service displays must be bulk packages of 10 or more products in specialty tobacco shops or in 21+ locations ( Section 22-1555-B(11) ). Vending machines must be in 21+ locations only ( Section 22-1553-A(1)(C) ). |
Yes – Section 22-1151-A(1) |
|
Maryland |
|
N/A |
Yes – Sections 16.7-201 , 16.7-211(a) , and 16.7-213(a) |
|
Massachusetts |
|
Self-service and vending machines only allowed in adult-only businesses ( Section 940-21.04(2), (4) ) |
No |
|
N/A |
No |
|
| Minnesota |
|
Banned from kiosk sales ( Section 461.21 ) and self-service machines must be in adults-only, tobacco-only businesses. Vending machines banned aside from 18+ businesses ( Section 461.18 ). |
Yes - Section 461.12(1) |
|
Mississippi |
|
N/A |
No |
|
Vending machines allowed in 18+ businesses or in machines with lock-out devices or under clear supervision of an 18+ employee ( Section 407.931.2 ) |
Yes - Section 407.934.1 |
|
|
Montana |
|
Vending machines allowed in bars with line-of-sight from supervisor ( Section 16-11-306(1) ) |
Yes - Section 16-11-303(1) |
|
Nebraska |
|
Vending machines only allowed in 18+ businesses ( Section 28-1429.02 ) and self-service machines only allowed in tobacco stores or cigar bars ( Section 28-1429.03 ) |
No |
|
Nevada |
|
N/A |
No |
|
New Hampshire |
|
N/A |
No |
|
New Jersey |
|
N/A |
No |
|
New Mexico |
|
Self-service displays banned ( Section 30-49-7(A) ) and vending machines restricted to 18+ businesses ( Section 30-49-7(b) ) |
No |
|
New York |
|
Self-service displays allowed in adult-only businesses ( Section 1399-cc(7) ). Vending machines allowed in 18+ businesses or businesses with few employees under 18 with products not accessible to the public. Must be supervised by the manager ( Section 1399-dd ). |
No |
| North Carolina |
|
Vending machines must be inaccessible to anyone under 18 ( Section 14-313(b1) ) |
No |
|
North Dakota |
|
Self-service and vending machines must be inaccessible to minors or be controlled by the store at all time ( Section 12.1-31-03(1)(b) ) and 12.1-31-03.1(1-2) ) |
No |
Ohio |
|
Vending machines allowed in 18+ businesses or under the supervision of the owner ( Section 2927.02(C) ) |
No |
|
Vending machines must be in 18+ businesses and self-service displays must be in adult-only businesses ( Section 63-1-229.17-.21(A) ) |
No |
|
|
Oregon |
|
Self-service displays allowed only in 21+ businesses ( Section 167.765 ) and vending machines allowed only in 21+ businesses ( Section 167.780(2) ). All sales banned at marijuana dispensaries ( Section 333-008-1200(11) ). |
No |
| Pennsylvania |
|
N/A |
Yes - Section 72-8220-A(a) |
|
Rhode Island |
|
Vending machines must be in 21+ business or locked in supervised areas ( Section 11-9-13.1(A) ) |
Yes - Section 23-1-56(a) |
|
Vending machines sales must be locked, controlled by the shop owners, and not accessible to anyone under 18 ( Section 16-17-500(D) ) |
No |
|
|
South Dakota |
|
Self-service displays only allowed in 18+ areas of shops ( Section 34-46-2(5) ) and 34-46-21 ) |
No |
|
Minor employees must be supervised by a 21+ employee ( Section 39-17-1505(f) ) |
No |
|
Texas |
|
Vending machines or self-service displays only allowed in 18+ business areas ( Section 161.086 )
|
Yes – Section 161.456 |
|
Utah |
|
Vending machines or self-service displays must be in 19+ restricted areas ( Section 76-10-105.1(2-3) ) in tobacco specialty shops |
Yes – Sellers ( Section 59-14-803(1) ) and retailers ( Sections 26-62-201 , 17-50-333(3)(a) and 10-8-41.6(3)(a)) |
|
Vermont |
|
Employees must be 16 years old to sell tobacco substitutes ( Section 1002(f) ). Self-service displays banned except for areas restricted to 18+ adults ( Section 1003(c)(2) ). |
Yes – Section 1002(a) |
|
Vending machines must be in 21+ restricted areas of a business or shop ( Section 18.2-371.2(A) ) |
No |
|
|
Washington |
|
Self-service displays allowed in 18+ businesses only ( Section 70.345.080 ) |
Yes – Section 70.345.030(1)(a) |
|
Vending machines restricted to 18+ areas of businesses ( Section 16-9A-8 ) |
No |
|
|
All samples of products restricted to 18+ areas of businesses ( Section 134.66(2)(am) ) |
No |
|
|
Wyoming |
|
Self-service and vending machines restricted to 18+ locations ( Section 14-3-303(b) ) |
No |
In 2024, VapeTM remains at the forefront of the vaping industry, especially in tax compliance and regulatory insight. This guide explores the nuances of vaping taxes across the United States and provides facts and clarity on how different tax structures impact consumers, businesses, public health, and the industry at large. Taxes on vaping products are steadily increasing in rate and prevalence and understanding tax laws and regulations is essential to the success of a business that wishes to participate in this space.
Understanding Vaping Taxes: Types, Rates, and State-Specific Variations
As of mid-2024, 32 states and the District of Columbia have implemented excise taxes on vaping products. VapeTM breaks down these taxes to help you navigate the complex landscape:
-
Ad Valorem Taxes
- These taxes are applied as a percentage of the wholesale or retail price, significantly affecting end-user costs.
- Example: Minnesota leads with a 95% wholesale tax, followed by Vermont at 92%, placing them among the highest-taxed states for vaping products.
-
Volume-Based Taxes (Ad Quantum)
- Taxes are applied per unit, commonly per milliliter or cartridge.
- Example: Connecticut’s closed-system tax is the highest nationwide at $0.40 per mL, while states like Delaware and Kansas impose a lower rate of $0.05 per mL.
Vaping Tax Impact on Consumer Behavior and Public Health
High taxes can discourage consumers from switching from traditional cigarettes to vaping products, which are widely considered a less harmful alternative. For instance, research indicates that Minnesota’s 95% tax may have prevented over 32,400 smokers from transitioning to vaping, underscoring the potential downside of aggressive tax policies on public health.
State-by-State Vaping Tax Guide for 2024
Below is a comprehensive list of vaping tax rates across U.S. states. Staying informed on each state’s rates is crucial for compliance and optimizing costs:
Comprehensive State-by-State Excise Tax for disposable vapes that you wish to resell in vape vending machines. (November 2024)
| State | Vape Tax/ E-Cig Tax | Is Non-Nicotine E-Liquid Taxable? |
|---|---|---|
| Alabama | no tax | No |
| Alaska | no tax | No |
| Arizona | no tax | No |
| Arkansas | no tax | No |
| California | 52.92% | No |
| Colorado | 56% | No |
| Connecticut | 10% | No |
| Delaware | 0.05/ml | No |
| District of Columbia | 79% | No |
| Florida | no tax | No |
| Georgia | 0.05/ml | Yes |
| Hawaii | 70% | Yes |
| Idaho | no tax | No |
| Illinois | 15% | Yes |
| Indiana | 15% | Yes |
| Iowa | no tax | No |
| Kansas | $0.05/ml | Yes |
| Kentucky | 15% | Yes |
| Louisiana | $0.15/ml | No |
| Maine | 43% | Yes |
| Maryland | 20% | Yes |
| Massachusetts | 75% | Yes |
| Michigan | no tax | No |
| Minnesota | 95% | No |
| Mississippi | no tax | No |
| Missouri | no tax | No |
| Montana | no tax | No |
| Nebraska | $0.05/ml | No |
| Nevada | 30% | Yes |
| New Hampshire | 8% | No |
| New Jersey | 10% | No |
| New Mexico | 12.50% | Yes |
| New York | 20% | Yes |
| North Carolina | $0.05/ml | No |
| North Dakota | no tax | No |
| Ohio | $0.10/ml | No |
| Oklahoma | no tax | No |
| Oregon | 65% | Yes |
| Pennsylvania | 40% | Yes |
| Rhode Island | no tax | No |
| South Carolina | no tax | No |
| South Dakota | no tax | No |
| Tennessee | no tax | No |
| Texas | no tax | No |
| Utah | 56% | Yes |
| Vermont | 92% | Yes |
| Virginia | $0.11/ml | No |
| Washington | $0.09/ml | Yes |
| West Virginia | $0.075/ml | Yes |
| Wisconsin | $0.05/ml | Yes |
| Wyoming | 15% | No |
This diversity in tax rates underscores the varying priorities among states. While some states emphasize harm reduction by adopting lower taxes on vaping products, others impose high taxes, potentially aiming to curb youth usage or generate significant state revenue.
This detailed breakdown of tax rates is essential for businesses and consumers alike to understand local regulations.
Crafting Balanced Tax Policies: VapeTM’s Insights for Harm Reduction and Revenue
As a leader in the vaping space, VapeTM advocates for balanced taxation that supports public health and reasonable revenue generation. Lowering taxes on less harmful options, particularly open systems, could better incentivize smokers to switch. Overly high taxes, however, risk driving consumers back to traditional cigarettes or even to illicit markets, counteracting public health goals.
Conclusion: VapeTM’s Role in Navigating the Vaping Tax Landscape
At VapeTM, we recognize the importance of informed tax policies in shaping a responsible and sustainable vaping industry. Our commitment to compliance, consumer education, and harm reduction guides everything we do. As states continue to evolve their tax regulations, VapeTM remains your go-to resource for the latest updates and insights into vaping industry compliance and best practices.
Stay tuned to VapeTM for industry-leading guidance on vaping regulations, and connect with us for updates on tax rates, policy changes, and industry trends.
Citation:
- FindLaw. "Vaping and E-Cigarette Laws by State: Sellers." FindLaw, June 6, 2024. Available at: https://www.findlaw.com/smallbusiness/business-laws-and-regulations/vaping-and-e-cigarette-laws-by-state--sellers.html . Accessed November 12, 2024.
Disclaimer: This information is for informational purposes only and is not legal advice. Consult your attorney before relying on any legal or tax details provided.