SB111,2258 Section 2258. 139.75 (14) of the statutes is renumbered 139.75 (14) (a) and amended to read:

SB111,1215,9 139.75 (14) (a) “Vapor product” means a noncombustible product that produces vapor or aerosol for inhalation from the application of a heating element to a liquid or other substance that is depleted as the product is used, regardless of whether the liquid or other substance contains nicotine, which may or may not contain nicotine, that employs a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means, regardless of shape or size, that can be used to produce vapor from a solution or other substance.

SB111,2259 Section 2259 . 139.75 (14) (b) and (c) of the statutes are created to read:

SB111,1215,11 139.75 (14) (b) “Vapor product” includes all of the following:

SB111,1215,13 1. An electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.

SB111,1215,17 2. Any cartridge or other container of a solution or other substance, which may or may not contain nicotine, that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.

SB111,1215,20 (c) “Vapor product” does not include a product regulated as a drug or device under sections 501 to 524A of the federal food, drug, and cosmetic act, 21 USC 351 to 360n-1.

SB111,2260 Section 2260 . 139.76 (1) of the statutes is amended to read:

SB111,1216,16 139.76 (1) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale or other disposition for any purpose of tobacco products by any person engaged as a distributor of them at the rate, for tobacco products, not including moist snuff and vapor products little cigars, of 71 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products and, for moist snuff, at the rate of 100 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products. The tax imposed under this subsection on cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar. On products imported from another country, not including moist snuff and vapor products, the rate of tax is 71 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties and transportation costs to the United States. On moist snuff imported from another country, the rate of the tax is 100 percent of the amount obtained by adding the manufacturer's list price to the federal tax, duties, and transportation costs to the United States. The tax attaches at the time the tobacco products are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the tobacco products. All tobacco products received in this state for sale or distribution within this state, except tobacco products actually sold as provided in sub. (2), shall be subject to such tax.

SB111,2261 Section 2261 . 139.76 (1b) of the statutes is created to read:

SB111,1216,24 139.76 (1b) The tax under sub. (1) is imposed on little cigars at the rate of 126 mills on each little cigar, regardless of weight. To evidence payment of the tax imposed under this section on little cigars, the department shall provide stamps. A person who has paid the tax shall affix stamps of the proper denomination to each package in which little cigars are packed, prior to the first sale within this state. Section 139.32 as it applies to the tax under s. 139.31 applies to the tax imposed under this section on little cigars.

SB111,2262 Section 2262 . 139.76 (1m) of the statutes is amended to read:

SB111,1217,10 139.76 (1m) An excise tax is imposed upon the sale, offering or exposing for sale, possession with intent to sell or removal for consumption or sale or other disposition for any purpose of vapor products by any person engaged as a distributor of them at the rate of 5 cents per milliliter of the liquid or other substance based on the volume as listed by the manufacturer and at a proportionate rate for any other quantity or fractional part thereof 71 percent of the manufacturer's list price. The tax attaches at the time the vapor products are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the vapor products. All vapor products received in this state for sale or distribution within this state, except those actually sold as provided in sub. (2), shall be subject to such tax.

SB111,2263 Section 2263 . 139.77 (1) of the statutes is amended to read:

SB111,1217,21 139.77 (1) On or before the 15th day of each month, every distributor with a place of business in this state shall file a return showing the quantity , including milliliters in the case of a vapor product, and taxable price of each tobacco product or vapor product brought, or caused to be brought, into this state for sale; or made, manufactured or fabricated in this state for sale in this state, during the preceding month. Every distributor outside this state shall file a return showing the quantity, including milliliters in the case of a vapor product, and taxable price of each tobacco product or vapor product shipped or transported to retailers in this state to be sold by those retailers during the preceding month. At the time that the return is filed, the distributor shall pay the tax.

SB111,2264 Section 2264 . 139.78 (1) of the statutes is amended to read:

SB111,1218,7 139.78 (1) A tax is imposed upon the use or storage by consumers of tobacco products in this state at the rate, for tobacco products, not including moist snuff and vapor products little cigars, of 71 percent of the cost of the tobacco products manufacturer's list price and, for moist snuff, at the rate of 100 percent of the manufacturer's established list price to distributors without diminution by volume or other discounts on domestic products. The tax imposed under this subsection on cigars, except little cigars, shall not exceed an amount equal to 50 cents for each cigar. The tax does not apply if the tax imposed by s. 139.76 (1) on the tobacco products has been paid or if the tobacco products are exempt from the tobacco products tax under s. 139.76 (2).

SB111,2265 Section 2265 . 139.78 (1b) of the statutes is created to read:

SB111,1218,13 139.78 (1b) A tax is imposed and levied upon the use or storage of little cigars in this state by any person for any purpose. The tax is levied and shall be collected at the same rate as provided for in s. 139.76 (1b). The tax under this subsection does not apply if the tax imposed by s. 139.76 (1) has been paid or if the little cigars are exempt from tax under s. 139.76 (2).

SB111,2266 Section 2266 . 139.78 (1m) of the statutes is amended to read:

SB111,1218,21 139.78 (1m) A tax is imposed upon the use or storage by consumers of vapor products in this state at the rate of 5 cents per milliliter of the liquid or other substance based on the volume as listed by the manufacturer and at a proportionate rate for any other quantity or fractional part thereof 71 percent of the manufacturer's list price. The tax does not apply if the tax imposed by s. 139.76 (1m) on the vapor products has been paid or if the vapor products are exempt from the vapor products tax under s. 139.76 (2).

SB111,2267 Section 2267 . 139.83 of the statutes is renumbered 139.83 (1).

SB111,2268 Section 2268 . 139.83 (2) of the statutes is created to read:

SB111,1219,2 139.83 (2) Sections 139.315, 139.32, 139.321, 139.322, 139.34, 139.35, 139.36, 139.362, 139.363, 139.38, 139.395, 139.41, 139.42, 139.43, and 139.44 (8), as they apply to the taxes under subch. II, apply to the administration and enforcement of this subchapter for little cigars.

SB111,2269 Section 2269 . Subchapter IV of chapter 139 [precedes 139.97] of the statutes is created to read:

SB111,1219,5 chapter 139

SB111,1219,6 subchapter Iv

SB111,1219,7 marijuana tax and regulation

SB111,1219,8 139.97 Definitions. In this subchapter: