Wholesalers warn stamping requirement for nicotine pouches would be costly and technically impractical

A major wholesaler told the Senate Economic Development committee that a proposal to stamp individual nicotine pouches or vaping products at the wholesale level would create extraordinary operational costs and regulatory risk.

Mike Kelly, identified as president of Core Mark, said his company supplies convenience stores and retail outlets and that its warehouses are not configured to open sealed rolls or pouches to apply tax stamps. Kelly said there is no commercially practical technology today to reliably stamp many varieties of sealed pouches without breaking packaging integrity; hand‑stamping would require extra staffing, additional warehouse space and could expose a wholesaler to federal manufacturing rules if repackaging is deemed relabeling.

Kelly and other industry witnesses urged the committee to work with wholesalers to find efficient alternatives. The committee responded that Tax and the Department of Liquor and Lottery will study stamping and excise options for nicotine pouches and vape products and said it expects recommendations before further statutory changes are made.

DLL and the AG's office told the committee they are considering technical solutions, and noted one industry vendor identified a machine capable of stamping some product types. The Attorney General's office said some states require stamps on small cigars and that technological fixes are possible, but cautioned that indefinite delays would leave the current tax collection and in‑store verification system inadequate.

The committee asked Tax and DLL to return with a recommendation and a timeline; DLL requested an implementation target of July 1, 2027 to allow vendor development and testing.

Committee members signaled interest in preserving in‑store tax verification while avoiding a requirement that imposes unworkable changes on wholesalers.