---
title: HB 84. Revenue and taxation; increase tax rate on consumable vapor products
collection: bills
id: 2025-2026/hb84
cite_as: HB 84, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb84
md_url: https://georgiacommons.org/bills/2025-2026/hb84.md
text_url: https://georgiacommons.org/bills/2025-2026/hb84/text
source_url: https://www.legis.ga.gov/legislation/69423
date: 2025-01-27
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb84.md?full=1
bill_number: HB 84
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-01-16
last_action: House Second Readers
sponsors:
- Michelle Au
- Ron Stephens
- Lee Hawkins
- Gerald Greene
- Debbie Buckner
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB84/2025
upstream_id: 1926142
summaries_model: claude-sonnet-5
topic_tags:
- vaping taxes
- tobacco and vaping law
- excise tax
- healthcare funding
- Georgia tax code
---
# HB 84. Revenue and taxation; increase tax rate on consumable vapor products
## Text
House Bill 84
By: Representatives Au of the 50th, Stephens of the 164th, Hawkins of the 27th, Greene of the
154th, and Buckner of the 137th
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 11 of Title 48 of the Official Code of Georgia Annotated, relating to taxes
on tobacco and vaping products, so as to increase the rate of the tax on consumable vapor
products; to provide that the proceeds derived from such increase are intended to be
appropriated for healthcare purposes; to provide for definitions; to provide for related
matters; to provide for effective dates; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 11 of Title 48 of the Official Code of Georgia Annotated, relating to taxes on
tobacco and vaping products, is amended in Code Section 48-11-1, relating to definitions,
by revising paragraphs (16) and (32) as follows:
"(16) 'Closed system' means any disposable container which is prefilled and sealed by the
manufacturer, not easily refillable or intended or designed to be refillable, and intended or
used to dispense consumable vapor products by way of a vapor device that is intended or
designed to be reused. Reserved."
"(32) 'Open system' means any method or manner used to contain a consumable vapor
product that is not a closed system. Reserved."
SECTION 2.
Said chapter is further amended in Code Section 48-11-2, relating to excise tax imposed,
rates for tobacco and vaping products, exemptions, collection and payment, and tax
separately identified, by revising subsection (a) and adding a new subsection to read as
follows:
"(a) An excise tax, in addition to all other taxes of every kind imposed by law, is imposed
upon the sale, receipt, purchase, possession, consumption, handling, distribution, or use of
cigars, cigarettes, loose or smokeless tobacco, alternative nicotine products, and vapor
products in this state at the following rates:
(1) Little cigars: two and one-half mills each;
(2) All cigars other than little cigars: 23 percent of the wholesale cost price, exclusive
of any trade, cash, or other discounts or any promotion, advertising, display, or similar
allowances;
(3) Cigarettes: 37¢ per pack of 20 cigarettes and a like rate, pro rata, for other size
packages;
(4) Loose or smokeless tobacco: 10 percent of the wholesale cost price, exclusive of any
trade, cash, or other discounts or any promotion, advertising, display, or similar
allowances;
(5) Consumable vapor products in a closed system: 5¢ per fluid milliliter;
(6) Consumable vapor products in an open system: 7 15 percent of the wholesale cost
price, exclusive of any trade, cash, or other discounts or any promotion, advertising,
display, or similar allowances; and
(7)(6) Vapor devices that contain any consumable vapor product at the time of sale and
which are not designed or intended to be reused or refilled: 7 15 percent of the wholesale
cost price, exclusive of any trade, cash, or other discounts or any promotion, advertising,
display, or similar allowances.
(a.1) It is the intent of the General Assembly that the state proceeds derived from any
increase on or after July 1, 2025, in the tax rates imposed pursuant to subsection (a) of this
Code section are to be appropriated annually to address healthcare issues affecting Georgia
residents. Upon request by the chairperson of the House Committee on Appropriations or
Senate Appropriations Committee, the department shall report the amount of such
increased proceeds derived in the prior fiscal year."
SECTION 3.
Said chapter is further amended in said Code section, as effective on December 31, 2029, by
revising subsection (a) and adding a new subsection to read as follows:
"(a) An excise tax, in addition to all other taxes of every kind imposed by law, is imposed
upon the sale, receipt, purchase, possession, consumption, handling, distribution, or use of
cigars, cigarettes, loose or smokeless tobacco, alternative nicotine products, and vapor
products in this state at the following rates:
(1) Little cigars: two and one-half mills each;
(2) All cigars other than little cigars: 23 percent of the wholesale cost price, exclusive
of any trade, cash, or other discounts or any promotion, advertising, display, or similar
allowances;
(3) Cigarettes: 37¢ per pack of 20 cigarettes and a like rate, pro rata, for other size
packages;
(4) Loose or smokeless tobacco: 10 percent of the wholesale cost price, exclusive of any
trade, cash, or other discounts or any promotion, advertising, display, or similar
allowances;
(5) Consumable vapor products in a closed system: 5¢ per fluid milliliter;
(6) Consumable vapor products in an open system: 7 15 percent of the wholesale cost
price, exclusive of any trade, cash, or other discounts or any promotion, advertising,
display, or similar allowances; and
(7)(6) Vapor devices that contain any consumable vapor product at the time of sale and
which are not designed or intended to be reused or refilled: 7 15 percent of the wholesale
cost price, exclusive of any trade, cash, or other discounts or any promotion, advertising,
display, or similar allowances.
(a.1) It is the intent of the General Assembly that the state proceeds derived from any
increase on or after July 1, 2025, in the tax rates imposed pursuant to subsection (a) of this
Code section are to be appropriated annually to address healthcare issues affecting Georgia
residents. Upon request by the chairperson of the House Committee on Appropriations or
Senate Appropriations Committee, the department shall report the amount of such
increased proceeds derived in the prior fiscal year."
SECTION 4.
(a) Except as otherwise provided for in subsection (b) of this section, this Act shall become
effective upon its approval by the Governor or upon its becoming law without such approval.
(b) Section 3 of this Act shall become effective on December 31, 2029.
SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
House Bill 84 would raise Georgia's excise tax on vapor products, taxing all consumable vapor products and vapor devices at 15 percent of wholesale cost instead of the current lower rates, with proceeds intended for healthcare spending.
### Plain-language summary
Georgia currently taxes vaping products differently depending on whether they come in a 'closed system' (sealed, prefilled containers, taxed at 5 cents per milliliter) or an 'open system' (refillable devices, taxed at 7 percent of wholesale cost). House Bill 84 eliminates that distinction entirely and taxes all consumable vapor products at a flat 15 percent of wholesale cost. It also raises the tax on vapor devices sold pre-filled and not meant to be reused or refilled from 7 percent to 15 percent of wholesale cost.
The bill states that the General Assembly intends for the extra money raised by this rate increase, starting July 1, 2025, to be set aside each year for healthcare issues affecting Georgia residents, and it requires the Department of Revenue to report those amounts to legislative budget leaders on request. A second set of identical changes takes effect December 31, 2029, to align with a scheduled law change on that date. Most of the bill takes effect immediately once signed by the Governor.
### What it does
- Removes the legal definitions of 'closed system' and 'open system' vapor products from Georgia tax law (O.C.G.A. § 48-11-1), marking both as reserved.
- Eliminates the separate 5 cents per milliliter tax on closed-system vapor products and the 7 percent tax on open-system products, replacing both with one 15 percent tax on the wholesale cost of all consumable vapor products.
- Raises the tax on pre-filled, non-reusable vapor devices from 7 percent to 15 percent of wholesale cost.
- States the legislature's intent that money raised by this tax increase go toward healthcare issues affecting Georgia residents, though it does not create a binding earmark.
- Requires the Department of Revenue to report the increased proceeds to House or Senate Appropriations Committee chairs upon request.
- Repeats the same rate changes in a second version of the law that takes effect December 31, 2029, to match a scheduled statutory update.
### Who it affects
Vape shop owners, wholesalers, and manufacturers of vapor products and devices sold in Georgia, who would pay the higher tax; adult vapers who could see higher retail prices passed on; and the Department of Revenue, which must track and report the increased proceeds.
### Why it matters
Vapor products would become more expensive to sell and likely to buy in Georgia, since retailers typically pass wholesale tax increases to consumers. The bill signals lawmakers' intent to direct the new revenue toward healthcare programs, though the money is not legally locked to that purpose.
### Key provisions
- Section 1 removes the definitions of 'closed system' and 'open system' vapor products from O.C.G.A. § 48-11-1, marking those paragraphs as reserved for future use.
- Section 2 rewrites O.C.G.A. § 48-11-2(a) to tax all consumable vapor products at 15 percent of wholesale cost, replacing the old 5-cent-per-milliliter and 7 percent rates.
- Section 2 also raises the tax on non-refillable, pre-filled vapor devices from 7 percent to 15 percent of wholesale cost.
- Section 2 adds subsection (a.1) expressing legislative intent that proceeds from the tax increase after July 1, 2025 go toward healthcare issues and requires Department of Revenue reporting to Appropriations Committee chairs.
- Section 3 makes identical changes to a version of the tax code that takes effect December 31, 2029.
- Section 4 makes the bill effective upon the Governor's signature, except Section 3, which takes effect December 31, 2029.
- Section 5 repeals conflicting laws.
## Status
- Status: Introduced (2025-01-16)
- Last action: House Second Readers (2025-01-27)
- Sponsors: Michelle Au, Ron Stephens, Lee Hawkins, Gerald Greene, Debbie Buckner
- Official page: https://www.legis.ga.gov/legislation/69423
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb84.md?full=1