Considering becoming a vape vending machine host in New York? 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 New York.

1. Placement Restrictions – Vending Machines

Under New York Public Health Law § 1399-mm-1, vending machines that dispense vapor products are only permitted in the following locations:

• A bar or the bar area of a restaurant;
• A private club;
• A tobacco business;
• A place of employment, only if:
  • An insignificant portion of the workforce is under age 21, and
  • The machine is not accessible to the general public, and
  • It is in plain view and under direct supervision of a person in charge.

2. Licensing & Permit Requirements

All persons selling vapor products, including vending machine operators, must register with the New York State Department of Taxation and Finance:

• Certificate of Registration Requirements:
  • Required for each place of business or vending machine location
  • Must be publicly displayed at each business site
  • Certificate is valid for the calendar year issued
  • Renewal must occur annually before September 20

Statutory Source: NY Tax Law § 1183 (2023)
"Every person who sells vapor products... must receive a Certificate of Registration... prior to engaging in business".

3. Taxes and Fees

🟧 Excise Tax on Vapor Products:

• Effective since July 1, 2020:
  • 20% of the retail price on vapor products
  • Applied at the point of sale, including vending machines
• Source: NY Tax Law § 1181-a

🟨 Sales Tax:

• Standard New York Sales Tax rate of 4%, plus local rates (up to ~8.875% in NYC), applies to all vape product sales

4. Regulatory Agencies

• NY State Department of Taxation and Finance – Licensing, excise and sales tax compliance
• NY State Department of Health – Public Health Law enforcement (e.g., flavor ban, youth access)
• New York City Department of Consumer and Worker Protection (DCWP) – Additional licensing in NYC

5. Municipal Ordinances – New York City

• Under NYC Administrative Code § 20-561.3:
  • E-cigarette Retail Dealer Licenses are required
  • No new licenses are issued, except to replace existing ones (moratorium enacted in 2019)
  • A cap applies per community district
• NYC enforces a flavor ban identical to state law, including menthol and mint, unless FDA-authorized

6. Flavor Ban

New York prohibits the sale of any flavored vapor products, defined as:

“Any vapor product... with a distinguishable taste or aroma other than tobacco,” including:
Fruit, mint, candy, menthol, dessert, spices, alcohol flavors, etc.

Exception:

Products that have received Premarket Tobacco Product Application (PMTA) approval from the FDA under 21 U.S.C. § 387j may be exempt.

7. Signage and Supervision Requirements

• Vending machines must be in plain view and under supervision in restricted areas
• Operators must post clear signage:

“Sale of vapor products to persons under 21 is prohibited.”

• Machines must not be accessible when business is closed

8. Other Legal and Compliance Notes

• Minimum age of sale is 21, with no exemptions for military or other statuses
• No person under 21 may access vending areas
• Products must not mimic youth-attractive imagery (e.g., cartoons or candy graphics)

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