Tackling Tobacco: March 2025 Legislative & Regulatory Roundup
NATIONAL REPORT — Tobacco legislation and regulation is constantly under review at the local, state and federal levels. In this monthly roundup, Convenience Store News highlights the latest proposals and approved changes happening across the United States.
CALIFORNIA
Campbell — The Campbell City Council approved a temporary ban to prevent new tobacco retailers from opening in the city until at least mid-May. The pause allows time for potential updates to the city's tobacco policy, including how close tobacco retailers can be to schools, reducing their number per capita and restricting how many can be near one another. Existing tobacco retailers will not be affected.
COLORADO
Denver — Owners of vape and tobacco shops are fighting back on a flavored tobacco ban. After gathering more than 17,000 petition signatures, they are hoping community members can help them overturn the ban by putting it on Denver's November ballot. Opponents of a ban project the city will miss out on $13 million in annual revenue if it is upheld. The petition signatures still need to make it through the rest of the verification process.
In late 2024, the Denver City Council voted 11 to 1 to ban the sale of flavored tobacco products, which includes e-cigarettes, menthol cigarettes, vapor products, and other flavored nicotine and tobacco products.
KENTUCKY
Frankfort — Gov. Andy Beshea signed a bill creating the Division of Tobacco, Nicotine and Vapor Product Licensing within the state Department of Alcoholic Beverage Control (ABC). The bill authorizes the division to enforce regulations on the sale and distribution of alternative nicotine products, tobacco products and vapor products.
The bill also provides that the Department of ABC shall publish a list of retail establishments that possess a tobacco, nicotine or vapor products license on its website.
MICHIGAN
Lansing — Gov. Gretchen Whitmer proposed adding a new tax on vape and other nontobacco nicotine devices. Under the proposal, the devices would have a new tax rate of about 32% of the wholesale price beginning in January 2026. Stores not authorized by the U.S. Food and Drug Administration would be unable to sell vapor products.
MONTANA
Helena — A bill was introduced to expand the taxation definition of "tobacco products" to include products containing nicotine or derived from tobacco and apply the current tobacco products tax rate at 50% of the wholesale price to vapor products and nicotine pouches effective July 1, 2025.
NEW HAMPSHIRE
Concord — A state bill that would have increased the cigarette tax from $1.78 to $2.78 per 20-cigarette pack and increased the vapor tax from 35 cents per milliliter to 65% of the wholesale sales price, effective July 1, 2026, was indefinitely postponed on March 20.
NORTH CAROLINA
Raleigh — State lawmakers are pushing a bill to raise the legal sales age for tobacco in North Carolina to 21. Currently, North Carolina is one of only seven states that hasn't done this. The legislation would also require all tobacco retailers to obtain a permit from the North Carolina Alcoholic Beverage Control Commission and pay a renewal fee each year, which would fund enforcement of the law.
NORTH DAKOTA
Bismarck — Members of the North Dakota House of Representatives rejected a bill that proposed to raise the taxes on cigarettes by 25 cents a pack, as well as higher taxes on vapes and chewing tobacco, among other products. The bill had previously passed in the North Dakota Senate.
OKLAHOMA
Oklahoma City — The Oklahoma Senate passed a bill that amends the cigarette tax laws to include heated products and provides a 50% tax reduction for heated products. The measure now moves to the state House of Representatives for consideration.