CHARLESTON, WV (LOOTPRESS) – A newly introduced bill in the West Virginia Legislature would change how electronic cigarette products are taxed in the state and direct the new tax revenue toward helping stabilize health insurance costs for public employees.
Senate Bill 673, introduced Friday by Sen. Robbie Morris, R-Randolph, would repeal the state’s current tax on e-cigarette liquid and replace it with a new excise tax based on the amount of nicotine contained in electronic cigarette products.
The proposal is part of the 2026 regular legislative session and has been referred to the Senate Committee on Finance.
Under the bill, electronic cigarette products would be taxed at a rate of three cents per milligram of nicotine. Lawmakers say the rate is designed to be equivalent to West Virginia’s existing cigarette tax of $1.20 per pack of 20 cigarettes.
The tax would apply to all e-cigarette products, regardless of whether they are refillable or disposable, and would be paid by the first distributor or wholesaler operating in the state.
The legislation distinguishes between open-system devices, which are refillable, and closed-system devices, such as sealed pods or disposable e-cigarettes.
If nicotine labeling is missing or considered unreliable, the bill establishes default assumptions for taxation purposes.
Closed-system products would be presumed to contain 40 milligrams of nicotine per unit, while open-system products would be presumed to contain six milligrams of nicotine per milliliter unless proven otherwise.
All net revenue collected from the new tax would be deposited into a special revenue fund for the Public Employees Insurance Agency (PEIA).
According to the bill, the funds must be used to reduce or stabilize the portion of health insurance premiums paid by employees or to prevent future increases that would otherwise be required.
The bill specifies that the new tax revenue cannot be used to replace existing employer contributions to PEIA.
It also requires PEIA to submit an annual report to the Joint Committee on Government and Finance detailing how much revenue was collected, how the money was used, and how employee premium rates compare with and without the additional funding.
If approved by the Legislature and signed into law, the proposed changes would take effect July 1, 2026.
