South Carolina Begins Collecting a Nicotine Vapor Tax on Oct. 1

The Woodruff Times reported on September 4, 2026 that South Carolina begins collecting a new tax on nicotine vapor products on October 1. Here is our summary.

The tax: House Bill 4303, signed by Gov. Henry McMaster on May 19 as Act 234 of 2026, sets the tax at 5 cents per milliliter of consumable nicotine liquid. The money goes to the state Medicaid Reserve Fund. Because it is based on volume rather than price or nicotine strength, a 2 mL product carries 10 cents of tax, a 30 mL bottle $1.50 and a 100 mL bottle $5.

Who collects it: According to the SC Department of Revenue, as summarized by the paper, the tax generally falls on the first business to buy or sell the untaxed product in the state. That can include wholesalers and distributors, out-of-state sellers shipping to SC retailers or consumers, retailers buying untaxed product from out of state, shops that mix their own nicotine e-liquids, and vending operators. Those businesses may need a free nicotine vapor products license, and they register, file and pay through MyDORWAY. Collection began October 1 and the first monthly return is due November 20. The law does not require stores to pass the tax on, but prices may change.

Coming in 2027: A separate law, Senate Bill 287 (Act 97), has the state attorney general build a directory of vapor products eligible for sale in South Carolina. Manufacturer certifications are due January 1, 2027, and the directory is to be operational by February 1, 2027 or when the attorney general publishes it, whichever is later. After grace periods, products not in the directory generally may not be sold in the state.

Local businesses with questions should check with the SC Department of Revenue directly. This is our own summary of reporting by Tracy Sanders for The Woodruff Times. Read the full story at the source link.