Guam committee hears bill to tax and license vaping products; DRT says implementation will require new reporting and staff

Senator St. Augustine, author of Bill 3-38 COR, told the Committee on Finance and Government Operation on Oct. 6 that his measure would create a licensing and excise framework for electronic nicotine delivery systems (ENDS), commonly called vapes, and set aside most of the tax revenue for Guam Memorial Hospital Authority (GMHA) and for enforcement and prevention.

The bill, introduced as the ENDS Excise Act of 2025, would create wholesale and retail licenses, require retailers who obtain a license to charge a flat excise tax on ENDS products and show that amount on customer receipts, and establish revolving funds for the Department of Revenue and Taxation (DRT) and GMHA. The bill text presented to the committee sets a 20% excise surcharge on ENDS product sales and allocates revenue as follows: 60% to Guam Memorial Hospital Authority, 30% to DRT for compliance and enforcement, and 10% for public-health prevention, education and the Youth Tobacco Education and Prevention Fund, including proceeds from fees and fines.

"This is not about penalizing adults who make personal…