Virginia HB 1449: Local tax authority; nicotine vapor products, definitions.

Bill Text

2026 SESSION

INTRODUCED

26105102D

HOUSE BILL NO. 1449

Offered January 23, 2026

A BILL to amend and reenact §§ 58.1-3830, 58.1-3832.1, and 58.1-3840 of the Code of Virginia and to amend the Code of Virginia by adding in Article 7 of Chapter 38 of Title 58.1 a section numbered 58.1-3832.2, relating to tobacco products tax; local tax authority; nicotine vapor products.

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Patron—Pope Adams

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Referred to Committee on General Laws

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Be it enacted by the General Assembly of Virginia:

1. That §§ 58.1-3830, 58.1-3832.1, and 58.1-3840 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding in Article 7 of Chapter 38 of Title 58.1 a section numbered 58.1-3832.2 as follows:

Article 7.

Cigarette and Nicotine Vapor Product Tax

§ 58.1-3830. Local cigarette and nicotine vapor product taxes authorized; use of dual die or stamp to evidence payment.

A. As used in this article, "nicotine vapor product" means the same as such term is defined in § 58.1-1021.01.

B. 1. Any locality is authorized to levy taxes upon the sale or use of cigarettes. The governing body of any locality that levies a cigarette tax and permits the use of meter impressions or stamps to evidence its payment may authorize an officer of the local or joint enforcement authority to enter into an arrangement with the Department of Taxation under which a tobacco wholesaler who so desires may use a dual die or stamp to evidence the payment of both the local tax and the state tax, and the Department is hereby authorized to enter into such an arrangement. The procedure under such an arrangement shall be such as may be agreed upon by and between the authorized local or joint enforcement authority officer and the Department.

2. Any locality may by ordinance impose a tax on the sale or use of nicotine vapor products and on such terms as determined by the governing body of the county, city, or town.

B. C. Any county cigarette tax imposed shall not apply within the limits of any town located in such county where such town now, or hereafter, imposes a town cigarette or nicotine vapor product tax. However, if the governing body of any such town shall provide that a county cigarette or nicotine vapor product tax, as well as the town cigarette or nicotine vapor product tax, shall apply within the limits of such town, then such cigarette or nicotine vapor product tax may be imposed by the county within such town.

C. D. 1. The maximum tax rate imposed by a locality on cigarettes pursuant to the provisions of this section shall be as follows:

1. a. If such locality is (i) a city or town that, on January 1, 2020, had in effect a rate not exceeding two cents ($0.02) per cigarette sold or (ii) a county, then the maximum rate shall be two cents ($0.02) per cigarette sold.

2. b. If such locality is a city or town that, on January 1, 2020, had in effect a rate exceeding two cents ($0.02) per cigarette sold, then the maximum rate shall be the rate in effect on January 1, 2020.

2. The maximum tax rate imposed by a locality on nicotine vapor products pursuant to the provisions of this section may exceed the rate of tax imposed on nicotine vapor products or liquid nicotine as otherwise provided by Virginia law.

D. E. Any locality that increases its tax rate on cigarettes or nicotine vapor products shall, for one calendar year after the increase, allow a person with unsold inventory to pay the tax increase on the unsold inventory by filing a return, rather than requiring the use of a stamp or meter impression. Such return shall identify the amount of unsold inventory, the amount of tax paid on such unsold inventory, and the amount of tax due as a result of the tax rate increase. Such return shall be due six calendar months after the effective date of the tax rate increase. For purposes of this subsection, "unsold inventory" means (i) cigarettes held prior to the tax rate increase and (ii) net volume of nicotine vapor products held prior to the tax rate increase.

§ 58.1-3832.1. Regional cigarette tax boards.

A. As used in this section:

"Member locality" means a locality that elects to become a member of a regional cigarette tax board and have its local cigarette tax administered by the board.

"Region" means the group of localities for which the regional cigarette tax board administers local cigarette taxes.

"Regional cigarette tax board" means a board established by a group of at least six member localities pursuant to their powers under this article, Chapter 13 (§ 15.2-1300 et seq.) of Title 15.2, and the Regional Cooperation Act (§ 15.2-4200 et seq.), with the purpose of administering local cigarette taxes on a regional basis subject to the provisions of this section.

B. A regional cigarette tax board shall have the following duties:

1. Providing for the use of a uniform meter impression or stamp as evidence of payment of any local cigarette tax within the region.

2. Entering into an arrangement, on b