Increases tax rate on liquid nicotine and container e-liquid.

This bill increases the tax rate on liquid nicotine from $0.10 to $0.30 per fluid milliliter and raises the tax on container e-liquid from 10% to 30% of its retail price. It directly affects distributors, wholesalers, and retailers of these products by requiring them to pay higher taxes on sales and inventory. The bill also mandates that these businesses file tax returns with the Division of Taxation by the first day of the second month after the effective date, reporting their liquid nicotine inventory and paying the additional tax due. The changes take effect on August 1, 2025, as part of the Governor’s FY2026 Budget recommendations.