When did Kansas start taxing e-cigarette consumable material, and at what rate?

Plain-English summary

Kansas Notice 16-05 explains the consumable material tax on electronic cigarettes and the delay of its effective date.

The tax. House Bill 2109 (2015) amended K.S.A. 79-3399 to impose a tax "upon the privilege of selling or dealing in electronic cigarettes in this state by any person engaged in business as a distributor," at the rate of $0.20 per milliliter of consumable material (and a proportionate rate on fractional parts). The tax's original effective date was July 1, 2016.

The delay. The 2016 Legislature passed Senate Bill 149, which amended the effective date to January 1, 2017.

Implementation. Kansas Administrative Regulations and forms were being created to implement the tax; distributors would be notified of additional information and filing instructions once finalized.

Date note. The notice carries no printed issue date; the date shown reflects the original July 1, 2016 effective date. See the companion Notice 16-06 for the registration and reporting requirements, and note that 2017 legislation (Notice 17-12) later reduced the rate to $0.05 per milliliter.

What this means for you

E-cigarette distributors

• The $0.20-per-milliliter consumable material tax that was to start July 1, 2016 was delayed to January 1, 2017 by Senate Bill 149.
• Watch for the registration and filing details in Notice 16-06; the rate was later cut to $0.05 per milliliter by 2017 law (Notice 17-12).

Common questions

What is taxed? Consumable material for electronic cigarettes, at the distributor level.

What was the original rate? $0.20 per milliliter (later reduced to $0.05 by 2017 legislation).

When did the tax take effect? January 1, 2017 -- delayed by Senate Bill 149 from the original July 1, 2016 date.

Citations and references

• House Bill 2109 (2015) -- amended K.S.A. 79-3399 to impose the $0.20-per-milliliter consumable material tax on distributors, originally effective July 1, 2016.
• Senate Bill 149 (2016) -- moved the effective date to January 1, 2017.
• See companion Notice 16-06; rate later reduced to $0.05 per milliliter (Notice 17-12).

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 16-05

Original ruling text

Miscellaneous Tax Phone: 785-368-8222
Division of Taxation FAX: 785-296-4993
915 SW Harrison St www.ksrevenue.org
Topeka KS 66612-1588
Nick Jordan, Secretary of Revenue Department of Revenue Sam Brownback, Governor
Steve Stotts, Director of Taxation

                                         NOTICE 16-05

                                 TAX ON CONSUMABLE MATERIAL
                                  FOR ELECTRONIC CIGARETTES

  The 2015 Legislature passed House Bill 2109 which amended K.S.A. 79-3399 by
  imposing a tax "upon the privilege of selling or dealing in electronic cigarettes in this
  state by any person engaged in business as a distributor thereof, at the rate of $.20 per
  milliter of consumable material for electronic cigarettes and a proportionate tax at the like
  rate on all fractional parts thereof." The effective date of this consumable material tax
  was to be July 1, 2016.

  The 2016 Legislature passed Senate Bill 149 which amended the effective date of the
  consumable material tax to January 1, 2017.

  Kansas Administrative Regulations and forms are being created to implement this tax.
  Once these are finalized and approved, you will be notified of additional information and
  return filing instructions. This information will also be posted on our website:
  www.ksrevenue.org.

  If you have any questions or need additional information, please contact our office by
  calling 785-368-8222, option 5, then option 4, from 8:00 a.m., to 5:00 p.m., Central time,
  Monday through Friday; or you may email us at: [email protected].