Iowa House says governor’s tobacco and vape tax hikes are in a “holding pattern”

Key Takeaways

• Speaker Pat Grassley said House Republicans are weighing the governor’s tobacco tax hike and a proposed 15% sales tax on vaping products
• Grassley said the proposal is in a “holding pattern” after House Republicans removed it from the governor’s MAHA bill
• Reynolds said she’s “not a governor who raises taxes,” but framed the proposal as consistent with MAHA and products linked to lung cancer
• Senate Majority Leader Mike Klimesh said he would discuss taxing vapes; the governor’s broader plan failed in a Senate committee last week
• State report cited: adult smoking rate is 5.6%, while vaping rises and 23.5% of 18–24-year-olds vape regularly

2Firsts, February 27, 2026 – 

According to Radio Iowa, House Speaker Pat Grassley (Pat Grassley) said House Republicans are wrestling with Gov. Kim Reynolds’ (Kim Reynolds) proposal to raise the state tax on tobacco products and begin assessing a 15% sales tax on vaping products.

At a Thursday afternoon news conference, Grassley suggested the proposal does not fit with recent moves to cut state income taxes, citing a 3.8% flat income tax and eliminating it on retirees, according to the report.

The report said Reynolds told reporters the day before that she is “not a governor who raises taxes,” but argued that raising taxes on products linked to lung cancer aligns with the Make America Healthy Again (MAHA) agenda. It added that House Republicans have already removed the tax increase from the governor’s MAHA bill.

“Whether it pops up again, I can’t say,” Grassley said, adding that their first action was not to include it in the bill where it was proposed, and “right now” that is the “holding pattern,” according to the report.

The report noted that before the 2026 legislative session began, Senate Majority Leader Mike Klimesh (Mike Klimesh), a former smoker, said vaping products deliver nicotine like cigarettes and he would talk with fellow Senate Republicans about taxing vapes. It also said the governor’s broader proposal to tax vapes and raise tobacco taxes failed in a Senate committee last week.

Finally, the report cited a state report indicating Iowa’s adult cigarette smoking rate has dropped to 5.6%, but e-cigarette use continues to rise and 23.5% of 18 to 24 year olds vape regularly.

Image source: Radio Iowa