Iowa Governor Kim Reynolds signed Senate File 2480 into law on Tuesday at the University of Iowa’s Stead Family Children’s Hospital, securing a dedicated funding stream for pediatric cancer research through a new tax on nicotine products. The legislation, heavily championed by families affected by childhood leukemia, aims to channel millions of dollars into life-saving medical research.
Starting January 1, 2027, a 5-cent tax will be applied to products such as vapes and nicotine pouches, which is projected to raise $3 million annually. While the bill has garnered widespread public support, it has drawn sharp criticism from local business owners who feel singled out.
Carol Horton, owner of Uncle Ruckus’ Smoke Shop in Des Moines, expressed frustration that specialty retailers are bearing the sole financial burden for a public health cause. Horton suggested that more universally consumed goods, such as alcohol or gasoline, should have been taxed instead to ensure a collective community contribution.
This new levy follows a 40% tax on smoking devices signed at the end of the 2024 legislative session. Retailers warn that the cumulative tax burden could force local smoke shops to close or relocate out of state, though they doubt it will significantly deter nicotine use among consumers.
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