SB1038,19 Section 19. 139.75 (4) (c) of the statutes is amended to read:

SB1038,6,13 139.75 (4) (c) Any person engaged in the business of selling tobacco products or vapor products electronic smoking devices outside this state who ships or transports tobacco products or electronic smoking devices to retailers in this state to be sold by those retailers.

SB1038,20 Section 20. 139.75 (4b) of the statutes is created to read:

SB1038,6,25 139.75 (4b) “Electronic smoking device” means a device that may be used to deliver any aerosolized or vaporized liquid or other substance for inhalation, regardless of whether the liquid or other substance contains nicotine, including an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. “Electronic smoking device” includes a component, part, or accessory of the device, and includes a liquid or other substance that may be aerosolized or vaporized by such device, regardless of whether the liquid or other substance contains nicotine. “Electronic smoking device” does not include a battery or battery charger when sold separately. “Electronic smoking device” does not include drugs, devices, or combination products authorized for sale by the U.S. food and drug administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.

SB1038,21 Section 21. 139.75 (5) of the statutes is amended to read:

SB1038,7,3 139.75 (5) “Manufacturer" means any person who manufactures and sells tobacco products or vapor products electronic smoking devices.

SB1038,22 Section 22. 139.75 (6) of the statutes is amended to read:

SB1038,7,8 139.75 (6) “Place of business" means any place where tobacco products or vapor products electronic smoking devices are sold, manufactured, stored, or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane, train, or vending machine.

SB1038,23 Section 23. 139.75 (7) of the statutes is amended to read:

SB1038,7,11 139.75 (7) “Retail outlet" means each place of business from which tobacco products or vapor products electronic smoking devices are sold to consumers.

SB1038,24 Section 24. 139.75 (8) of the statutes is amended to read:

SB1038,7,15 139.75 (8) “Retailer" means any person engaged in the business of selling tobacco products or vapor products electronic smoking devices to ultimate consumers.

SB1038,25 Section 25. 139.75 (9) of the statutes is amended to read:

SB1038,7,21 139.75 (9) “Sale" means any transfer, exchange , or barter for a consideration. It includes a gift by a person engaged in the business of selling tobacco products or vapor products electronic smoking devices for advertising or as a means of evading this subchapter or for any other purpose, and it includes solicitation of orders for, and the sale for, future delivery.

SB1038,26 Section 26. 139.75 (10) of the statutes is amended to read:

SB1038,7,24 139.75 (10) “Storage" means any keeping or retention of tobacco products or vapor products electronic smoking devices for use or consumption in this state.

SB1038,27 Section 27. 139.75 (11) of the statutes is amended to read:

SB1038,8,3 139.75 (11) “Subjobber" means any person, other than a manufacturer or distributor, who buys tobacco products or vapor products electronic smoking devices from a distributor and sells them to persons other than the ultimate consumers.

SB1038,28 Section 28. 139.75 (13) of the statutes is amended to read:

SB1038,8,6 139.75 (13) “Use" means the exercise of any right or power incidental to the ownership of tobacco products or vapor products electronic smoking devices.

SB1038,29 Section 29. 139.75 (14) of the statutes is repealed.

SB1038,30 Section 30. 139.76 of the statutes is amended to read:

SB1038,9,4 139.76 Imposition; exceptions. (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 electronic smoking devices, 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 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 electronic smoking devices, 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.

SB1038,9,15 (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 electronic smoking devices 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. The tax attaches at the time the vapor products electronic smoking devices are received by the distributor in this state. The tax shall be passed on to the ultimate consumer of the vapor products electronic smoking devices. All vapor products electronic smoking devices 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.

SB1038,9,22 (2) Tobacco products and vapor products electronic smoking devices sold to or by post exchanges of the U.S. armed forces, to or by federally operated veterans hospitals in this state, and tobacco products and vapor products electronic smoking devices sold to an interstate carrier of passengers for hire to be resold to bona fide passengers actually being transported and tobacco products and vapor products electronic smoking devices sold for shipment outside this state in interstate commerce are not subject to the tax.

SB1038,31 Section 31. 139.77 (1) of the statutes is amended to read:

SB1038,9,25 139.77 (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 an electronic smoking device, and taxable price of each tobacco product or vapor product electronic smoking device 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 an electronic smoking device, and taxable price of each tobacco product or vapor product electronic smoking device 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.

SB1038,32 Section 32. 139.78 (1) of the statutes is amended to read:

SB1038,10,19 139.78 (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 electronic smoking devices, of 71 percent of the cost of the tobacco 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 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).