New Law in Tennessee, USA Imposing A 10% Wholesale Tax On All Vaping Products, And The Consumables Must Not Come From Hostile Countries

According to vaping360, a news report on April 25th: The Tennessee state legislature passed a bill. This bill will establish a PMTA registration law in Tennessee and will be the first to impose a tax on electronic cigarette products in the state. The bill, named SB763, was passed in the state legislature on April 16th and was revised based on the original proposal of the Senate. The state Senate accepted the revisions the next day. The bill was delivered to Governor Bill Lee for signature as a law or veto on April 22nd. The bill received overwhelming support in both the House and Senate and it is expected that Governor Bill Lee will support signing the bill. The bill was pushed by the tobacco industry lobbying forces. The original version proposed to completely ban all products not authorized by the FDA, which almost put all electronic cigarette stores in the state in a survival crisis. Under the strong opposition of local industry groups such as the Tennessee Tobacco-Free Association, the bill was ultimately revised in several key aspects. The main contents of the bill include: Starting from July 1st, 2025, a 10% wholesale tax will be imposed on all vaping products. It is necessary to sell the PMTA product list. The state tax authority will start to publish the list of manufacturers selling legal vaping products on January 1st, 2026. Manufacturers need to submit product certifications by August 1st, 2025, with a $25 annual fee for each product certification. Compliance requirements: Products must meet at least one of the following conditions to be registered: Have received FDA market sales authorization; Are under FDA review; Have been rejected by the FDA but the decision was suspended or revoked by a court or FDA.

Raw material composition: The manufacturer must prove that all the consumable materials of the vaporization products are processed by factories registered with the US FDA, and the consumables do not come from "hostile countries". Transition period: Products not included in the product catalogue can be sold until January 1, 2027. Age limit: Retailers must verify the identity documents of customers under the age of 50. Advertising restrictions: Limit the advertising, and increase the penalty for retailers for selling to minors.
"Consumables" mainly refer to disposable e-cigarette oil products. For local retailers, there is no impact for the time being. The impact is mainly on the sale of disposable e-cigarettes in convenience stores. As long as the e-cigarette stores selling e-liquid products are in the PMTA list, through the conclusion of the state's bill, legislators will not decide to impose the "hostile country" restrictions on those from China that can be used in reusable devices. Currently, 12 states have passed registration laws. If Governor Lee signs SB763 bill, it will become the 13th state to formulate registration laws.