Iowa Gov. Kim Reynolds signs vape tax that will fund cancer research

On Tuesday, Iowa Gov. Kim Reynolds (R) signed a new bill into law to tax the sale of vapes and other nicotine products, which will direct millions towards pediatric cancer research.

Senate File 2480 will go into effect on July 1, 2027. It will tax the sale of nicotine products at a 5-cent rate per milliliter of nicotine in a solution. The bill does not include additional taxes for cigarettes or products that contain tobacco. The first $3 million raised from the tax annually will go to the University of Iowa’s Stead Family Children’s Hospital. The funds will be used to conduct research and expand clinical therapy access.

“By standing up for all the children of our state, you’ve honored your loved ones in the greatest way possible, and your advocacy is turning awareness into action, as Iowa now commits $3 million each year to the cause you’ve so effectively championed,” Reynolds said during the bill signing. “As governor, even more so as the wife of someone living with cancer, I could not be more grateful.”

The Iowa Legislative Service Agency, the state’s nonpartisan fiscal analysis bureau, estimated that SF 2480 will generate $1.6 million in revenue during the 2027 fiscal year, and steadily increase annually.