Considering becoming a vape vending machine host in North Dakota? 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 North Dakota.

Placement Restrictions

Vape vending machines are regulated under N.D. Cent. Code § 12.1-31-03(2), which provides:

“A vending machine that dispenses tobacco products, including electronic smoking devices, may not be located in any public place unless the vending machine is either:
(a) Located in an area where persons under twenty-one years of age are not permitted; or
(b) Under the direct supervision of the owner or an employee, and the machine is disabled until unlocked by such person before each purchase.”

This statute effectively:

• Prohibits vape vending machines in areas where under-21s are allowed.
• Permits vending machines only in:
  • 21+ establishments (bars, clubs)
  • Employee-supervised areas where the machine is disabled until activation

There is no exception allowing unstaffed machines in general public access areas, even with age-verification technology.

Licensing & Permitting Requirements

Under N.D. Cent. Code § 57-36-02, any person engaging in retail sales of tobacco or electronic smoking devices (which includes vape and nicotine pouch vending) must:

• Obtain a Tobacco Retailer's License from the Office of the State Tax Commissioner.
• File separate applications for each vending machine location.
• Pay a $15 annual license fee per location.
• Display the license in a conspicuous location on or near the machine.

Additionally, any new location requires advance registration and approval. Failure to do so may result in fines or suspension of the license.

Excise Tax & Sales Tax

Excise Tax:

• As of N.D. Cent. Code § 57-36-31, there is a 28% excise tax on the wholesale purchase price of electronic smoking devices, including:
  • Prefilled vape cartridges
  • E-liquids
  • Nicotine pouches
  • Refill containers

Sales Tax:

• The standard North Dakota sales tax rate is 5%, plus any applicable local taxes.
• Sales through vending machines are fully taxable at 100% of the sales price.

Regulatory Agencies

The following agencies are responsible for enforcement and compliance:

• North Dakota Office of State Tax Commissioner
  https://www.tax.nd.gov
  Manages licensing, excise tax collection, and compliance audits.
• North Dakota Attorney General
  Enforces consumer protection and underage sales violations.
• North Dakota Department of Health (Division of Tobacco Prevention and Control)
  Enforces packaging and nicotine warning rules.

Municipal Ordinances (Fargo, Bismarck)

• Fargo: Requires a city vending machine license. Local zoning ordinances may further restrict vending machines in residential or mixed-use zones.
• Bismarck: Mirrors state law on 21+ restrictions but may require a separate city business permit for machines in bars or clubs.

Check with each city's clerk’s office or business licensing department before placing a machine.

Additional Compliance Notes

• N.D. Cent. Code § 12.1-31-03.1 prohibits free samples of vapor products.
• Child-resistant packaging is required for all e-liquids and nicotine containers under federal law (21 CFR 1143.3).
• All vending machines must display a sign:

“The sale of tobacco products, including electronic smoking devices, to persons under 21 is prohibited by law. Proof of age required.”

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