TAXATION – Amends and adds to existing law to provide a tax on the sale and distribution of electronic smoking devices.

Idaho's H 314 imposes a 3-cent tax per milliliter of nicotine solution on electronic smoking devices (e-cigarettes) sold, distributed, or manufactured in the state, effective July 1, 2025. It directly affects distributors (who bring devices into Idaho or manufacture them) and retailers (who sell untaxed devices to consumers). The tax applies when distributors import, manufacture, or ship devices to retailers, and retailers selling untaxed devices face a penalty of 3x the tax amount (minimum $50 per device). Revenue from the tax is split: 75% funds programs preventing minors' access to nicotine products, and 25% supports public health districts for tobacco/vape cessation programs. The bill updates existing tobacco tax definitions and administrative requirements to include electronic smoking devices.