Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor
Division of the Budget
February 10, 2025
The Honorable Tom Kessler, Chairperson
House Committee on Federal and State Affairs
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Kessler:
SUBJECT: Fiscal Note for HB 2094 by House Committee on Federal and State Affairs
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2094 is
respectfully submitted to your committee.
HB 2094 would authorize the sale of electronic cigarettes in cigarette vending machines.
The bill would amend the definition of “wholesale dealer” to allow individuals to be able to sell
electronic cigarettes to other wholesale dealers, retail dealers, vending machine operators, and
manufacturer’s salespersons.
The Department of Revenue indicates over 400 consumable material distributors would
now have to become a “wholesale dealer” in order to continue doing business in Kansas. The
Department states the license fee is $50 for every two years and could result in additional revenue
of $20,000 (400 distributors x $50 license fee). The Department is unable to estimate a fiscal
effect from increased sales for electronic cigarette dealers and retailers, but the Department notes
any increased sales could provide additional revenue from the electronic cigarette tax and sales
tax. The Department states enactment of the bill would increase expenditures by $82,278, along
with an additional 1.00 FTE position in FY 2026 to implement the bill’s provisions. Any fiscal
effect associated with HB 2094 is not reflected in The FY 2026 Governor’s Budget Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue