Alternative Nicotine Products and Vapor Products Subject to Missouri Sales Tax

Sep 16th, 2014

Missouri recently enacted a law stating that alternative nicotine products and vapor products are subject to sales tax but are not otherwise taxed as tobacco products.

Missouri has a sales tax and a tobacco products tax. Tobacco products are generally subject to both the sales tax and the tobacco products tax. The new law excludes alternative nicotine products and vapor products from the definition of "tobacco products." Alternative nicotine products and vapor products are subject to the sales tax but are not otherwise taxed as tobacco products.

An "alternative nicotine product" is a non-combustible product containing nicotine intended for human consumption. Such products would include nicotine patches or nicotine gum. A "vapor product" is a non-combustible product containing nicotine that uses an electronic, chemical, or mechanical means to produce vapor from nicotine in a solution or other form. It includes electronic cigarettes and cigars.

http://www.senate.mo.gov/14info/BTS_Web/Bill.aspx?SessionType=R&BillID=29624824