Considering becoming a vape vending machine host in Hawaii? Familiarize yourself with the current state laws to ensure compliance and successful operations. Here's a quick breakdown of current state regulations for vapor products, vape machines, and sales.Whether you're a retailer, entrepreneur, or operator, understanding these regulations is essential not only for compliance but also for safeguarding your investment. Below is a detailed guide that breaks down the current rules, requirements, and best practices for operating a vape vending machine in Hawaii.

1. Vending Machine Placement Restrictions

Under Hawaii law:

“Except as otherwise provided under this section, a retailer may sell cigarettes, smokeless tobacco, and all other tobacco products only in a direct, face-to-face exchange between the retailer and the consumer. Examples of methods of sale that are not permitted include vending machines and self-service displays.”
— HRS § 328J-18(a)

Exceptions:

“This section shall not apply to:
(1) A vending machine that is located in a bar, cabaret, or any establishment for which the minimum age for admission is eighteen.
(2) A vending machine that is located in a private club.
(3) A vending machine that is located in any establishment where the vending machine is under the continuous supervision of the owner or lessee of the premises or an employee thereof.”
— HRS § 328J-18(b)

2. Retail Tobacco Permit Requirements

Retailers selling electronic smoking devices (ESDs), e-liquids, or nicotine pouches must obtain a retail tobacco permit:

“Every retailer engaged in the retail sale of cigarettes and other tobacco products upon which a tax is required to be paid under this chapter shall obtain a retail tobacco permit.”
— HRS § 245-2.5(a)

• Application: Submit Form BB-1 to the Hawaii Department of Taxation.
• Fee: $50 annually per retail location.
• Posting: The permit must be conspicuously displayed at the place of business.

3. Excise Tax on Electronic Smoking Devices and E-Liquids

Effective January 1, 2024:

“An excise tax equal to seventy per cent of the wholesale price of each electronic smoking device or e-liquid sold, used, or possessed by a wholesaler or dealer on and after January 1, 2024.”
— HRS § 245-3(a)(14)

4. General Excise Tax (GET) Requirements

All businesses in Hawaii must register for the General Excise Tax:

• Application: Submit Form BB-1 to the Hawaii Department of Taxation.
• Tax Rate: 4% statewide, with an additional 0.5% surcharge in certain counties.

5. Local County Ordinances

While state law preempts local regulations on the sale of tobacco products:

“All local ordinances or regulations that regulate the sale of cigarettes, tobacco products, and electronic smoking devices are preempted, and existing local laws and regulations conflicting with this chapter are null and void.”
— HRS § 328J-11(b)

Counties may have additional regulations regarding the use of tobacco products in public spaces. For example, Hawaii County has prohibited smoking in parks and beaches.

Disclaimer: This page is intended for informational purposes only and should not be considered legal advice. Consult official Hawaii government resources for the most current regulations.