Guam Legislature Proposes 20% Retail Excise Tax on E-Cigarettes to Bolster Public Health Funding

Key Points

• Session agenda (Sept. 29): The second-reading calendar included Bill 1-38, aimed at adjusting annual appropriations for the Guam Cancer Trust Fund (GCTF).

• Tax design: Bill 3-38 proposes a 20% excise tax at the retail level on e-cigarette (ENDS) products, with designated allocations for enforcement and public health uses.

• Funding assurance debate: Lawmakers and stakeholders have highlighted GCTF shortfalls, advocating stable “sin tax” streams— including portions of alcohol and tobacco (e-cigarette) taxes—earmarked for the trust.

• Context: Guam has repeatedly discussed taxing e-cigarettes to offset declining revenues from traditional tobacco; related proposals continue to advance in the current legislature.

2Firsts, September 30, 2025 — Citing Citizenportal, Guam’s 38th Legislature advanced Bill 1-38 to second reading during its September 29 regular session, focusing on securing stable annual funding for the Guam Cancer Trust Fund (GCTF) to support cancer patients and their families. Session materials indicate Bill 1-38 seeks to revise appropriation provisions to raise or lock in yearly GCTF funding levels.

On the revenue side, lawmakers underscored the shift from conventional cigarettes to vaping and the need to tax e-cigarette products to supplement public health financing. The previously introduced Bill 3-38 (ENDS Excise Act of 2025) would impose a 20% retail excise tax on ENDS products and specify the allocation of proceeds to public health and youth tobacco education and prevention, tax enforcement, and Guam Memorial Hospital (GMH) operations and maintenance. This framework is intended to create incremental fiscal space for health programs.

At the same time, recent hearings and media coverage have called for statutory mechanisms to guarantee GCTF receives a defined share of “sin tax” revenues (alcohol and tobacco, including e-cigarettes), to address longstanding funding gaps. Some proposals envision dedicating a set proportion—or establishing a floor amount—of such revenues to GCTF to shield cancer services from annual budget cycles.

According to the legislature’s published agenda, the September 29 session also advanced measures on budget and personnel, as well as public health and education. While Bill 3-38 is a previously filed tax bill, its tax base and earmarking scheme remain central to lawmakers’ discussion of health-care financing. Any direct dedication of a portion of e-cigarette tax receipts to GCTF would still require further legislation or amendments to specify the revenue transfer.