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State of the States: Tobacco & Alternative Regulatory Roundup — September 2026

Corrected SC and TN tax rates, Virginia's new retail tobacco permit (Oct 1), NC's pouch tax and HB 430, and the FDA's first flavored-vape authorization
September 22, 2026 by
The rules for tobacco and alternative-products retail keep changing. Here is what changed recently in the states we serve, and what it means for your shop. This article is for general information only and is not legal or tax advice. Confirm requirements with your state agency or counsel. Updated September 23, 2026 with corrected SC and TN tax rates, Virginia's new retail permit, and the FDA's first flavored-vape authorization.

NCNorth Carolina

AT A GLANCE
  • $1,000 annual tax on vape shops (FY 2026–27 budget)
  • 21+ age verification now mandatory at purchase
  • Nicotine pouches taxed since July 2025: 10¢ per container of up to 20 units (Form B-A-102)

The FY 2026–27 state budget brings two changes every vape-selling shop in NC should know about: a $1,000 annual tax on vape shops operating in the state, and a mandatory 21+ age-verification requirement at purchase. If your store already cards everyone, the new rule mostly formalizes what you do, but the annual tax is a new cost to budget for.

Also on the radar: HB 430 ("Solly's Law") would raise NC's tobacco purchase age to 21 in state law and require an ABC Commission permit to sell any tobacco or nicotine product, cigars included. It has not passed. We'll report if it moves.

SCSouth Carolina

AT A GLANCE
  • First-ever vape tax: 5¢/mL of nicotine liquid, effective October 1, 2026
  • Heat-not-burn: 42.75¢ per 20-pack (75% of the 57¢ cigarette rate)
  • Registration opens September 24 on MyDORWAY; first return due November 20

Starting October 1, 2026, South Carolina taxes nicotine vapor products for the first time at 5¢ per milliliter of consumable nicotine liquid. Heat-not-burn sticks get their own rate of 21.375 mills per stick ($0.4275 per 20-pack). The tax falls on the first business that buys or sells the product in SC, whether that is a retailer, wholesaler, distributor or manufacturer. SCDOR opens registration on September 24, and the first return (for October) is due November 20. If you buy vapor products directly from out-of-state sellers, you may be the one who has to register.

VAVirginia

AT A GLANCE
  • New ABC retail tobacco permit required from October 1, 2026 ($400 one-time; $300 for ABC licensees)
  • Cigar-only and pipe-tobacco shops are exempt
  • Unlisted vapor products: fines start at $5,000 per product

Virginia now requires a retail tobacco permit from Virginia ABC for stores selling cigarettes, vapor products, heated tobacco, chew, snuff or snus. Selling without one after October 1, 2026 is a misdemeanor. The application fee is $400 ($300 if you already hold an ABC license), owners with a 10%+ stake need a background check, and permits issued before October 1 run through September 30, 2027. Stores that sell only cigars or pipe tobacco are exempt. Vapor products must also appear on the Attorney General's certification directory, and fines for selling unlisted products now start at $5,000 per product and rise to $15,000 for repeat violations.

TNTennessee

AT A GLANCE
  • Vapor products taxed at 10% of wholesale cost since July 1, 2025
  • Only directory-listed vapor products may be sold (directory live since January 1, 2026)
  • Retailers must buy from licensed distributors or wholesalers

Since July 1, 2025, Tennessee taxes vapor products at 10% of the wholesale cost price, reported by the wholesaler on the monthly tobacco return. The state's public vapor directory went live on January 1, 2026. Unlisted products can be seized and may not be sold, and retailers may only buy from licensed distributors or wholesalers. Check the directory before you stock.

USFederal / FDA

AT A GLANCE
  • Six on! PLUS nicotine pouches authorized (December 2025)
  • Glas G2 device and tobacco pod authorized (March 2026)
  • First fruit-flavored vapes authorized for adults (Glas, May 2026)

The FDA has picked up the pace on authorizations. Six on! PLUS nicotine-pouch products were authorized in December 2025. In March 2026 the agency authorized a Glas G2 device and tobacco pod, the first authorization for an independent vape company. In May 2026 it went further and authorized Glas fruit-flavored products for adults, the first flavored e-cigarettes it has ever cleared, tied to age-gating technology. Review timelines are still unpredictable, so treat any unauthorized product's status as subject to change.

WHAT THIS MEANS FOR YOUR ORDERS

Most of this month's changes hit vapor products. Big Distro focuses on cigars, other tobacco products and cigar accessories. Premium cigars that meet the FDA's definition stay outside FDA premarket review, and cigar-only shops are exempt from Virginia's new permit. If you sell into VA, SC or TN and want help checking what applies to your store, reach out to your Big Distro sales contact.

Sources: WRAL (NC vape law) · NCDOR alternative nicotine tax · NC Health News (HB 430) · SCDOR · Virginia ABC · 2Firsts (VA fines) · TN Dept. of Revenue · CSP Daily News (on! PLUS) · CNBC (Glas flavors)