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HB 4032ARIZONASession 57th-2nd-regularState Billdead

Did Not Advance

Arizona House Bill 4032 levies a 50% retail excise tax on alternative nicotine and vapor products and distributes revenues to education and health funds

Original title: alternative nicotine; vapor products; tax.

Last action · February 10, 2026: House Second ReadingSponsors: Kevin Volk and 4 others

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Proposed

Arizona House Bill 4032 establishes a 50 percent retail excise tax on alternative nicotine and s purchased by consumers. The measure directs the collected revenues into the state general fund, early childhood development and health fund, ninth grade on-track grant program fund, smoke-free Arizona fund, out-of-school time program fund, and early intervention support fund.

Why it matters

Consumers purchasing alternative nicotine or s face a 50 percent retail excise tax, altering retail pricing for these items across the state. At the same time, state funds receive new revenue streams dedicated to early childhood education, ninth-grade student retention, out-of-school programs, and early intervention services.

Background

The Arizona Legislature considers state tax and revenue measures during regular legislative sessions held at the state capitol in Phoenix. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Consumers

Consumers purchasing alternative nicotine or vapor products at retail are subject to a 50 percent excise tax on the purchase price.

Directly affected

Retailers

Retailers must collect and remit the new excise tax on alternative nicotine and vapor products, though the tax is excluded from their gross proceeds of sales calculations.

Directly affected

School districts and charter schools

Eligible school districts and charter schools may receive grant funding through the ninth grade on-track grant program fund.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What products are subject to the new 50 percent excise tax?

The tax applies to all s and s sold at retail to a consumer in Arizona, with exceptions for FDA-authorized drugs or devices and marijuana products.

How are the revenues generated from the tax distributed?

Revenues are split among several funds: 21 percent to the state general fund, 49 percent to the early childhood development and health fund, 5 percent to the ninth grade on-track grant program fund, 1 percent to the smoke-free Arizona fund, 19 percent to the out-of-school time program fund, and 5 percent to the early intervention support fund.

Does the tax apply to wholesale transactions?

No, the excise tax is levied specifically on sales made at retail to a consumer and excludes s, retailers, or wholesalers acting in their capacity as sellers.

What else do you want to know?

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Where This Stands

This bill did not become law - Died at adjournment · on the House floor.

Procedural history

2 actions

Feb 10, 2026HouseFloor
House Second Reading
Feb 9, 2026HouseIntroduced
House First Reading

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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