Illinois Lawmakers Propose 36% Wholesale Tax on Vaping Products

Senate Bill 1124 would amend the Tobacco Product Tax Act of 1995 to include e-cigarettes in the definition of tobacco products. This would apply a 36 percent wholesale tax to all components of vaping products, including “any device that employs a battery or other mechanism to heat a solution or substance to produce a vapor or aerosol intended for inhalation.” This bill would also tax all e-liquids, “whether or not it contains nicotine intended for use in the device.” Gov. J.B. Pritzker who is pushing the bill, said he hopes that the revenue from the tax would “balance his budget proposal.” … Continue reading Illinois Lawmakers Propose 36% Wholesale Tax on Vaping Products

New Yorkers to Pay 20 Percent Sales Tax on Vaping Products

Vapers in New York will pay a new 20 percent sales tax on vaping products starting Dec. 1. The tax, passed as part of the state’s fiscal 2019-2020 budget (S.B. 1509C), applies to the liquid and gel that is used in electronic devices including cigarettes, cigars, and vaping pens, regardless of whether they contain nicotine. The measure is projected to raise $2 million in revenue in fiscal year 2020, which ends March 31, and $19 million in FY 2021, according to the governor’s office. The money will go to the state’s Health Care Reform Act Resource Fund. The revenue estimate … Continue reading New Yorkers to Pay 20 Percent Sales Tax on Vaping Products

Senate Committee Grapples With E-Cigarette Taxes

A Senate panel is grappling with how – and how much – to tax electronic cigarettes. Health advocates say such a tax is important because of the growing use of e-cigarettes among young people – a 78 percent increase last year, says American Cancer Society’s Bryan Hannon. “And I would say that this increase in youth use isn’t necessarily a glitch. I think this is really by design,” Hannon says. “These products – especially the bigger products on the market – are owned by tobacco companies and they’re using the same playbook that they used decades ago with cigarettes.” Hannon … Continue reading Senate Committee Grapples With E-Cigarette Taxes

Vape Tax Question: What to Tax?

(INDIANAPOLIS) – A tax on vaping is still moving at the statehouse, but senators are trying to decide exactly what to tax. The House approved a tax based on the amount of e-liquid in a cartridge. Health advocates say that tax of four to 12 cents a cartridge is a good start, but too low. Bryan Hannon with Tobacco Free Indiana says Juul, by far the dominant player in the vaping industry, uses little liquid and would barely be touched. He’s urging senators to set the tax at 24%of the price, about what the tax on traditional cigarettes adds up to. … Continue reading Vape Tax Question: What to Tax?

Washington state vape businesses, customers fear 60% tax

Washington lawmakers introduced HB 1873. It would add a 60 percent tax to vapor products, which is similar to tobacco, KIRO-TV reported. Currently vape isn’t taxed. Vapor store owner Joshua Baba said vape is different than tobacco and the price hike would force many shops to close their doors. “Sixty percent, we owe that to the state just all of a sudden? That’s crazy. That does put me out of business,” he said. Standing in the rain, Monday afternoon a small group held signs and gathered to protest. “Those kind of numbers are scary to somebody. I go through a couple bottles … Continue reading Washington state vape businesses, customers fear 60% tax

State lawmakers considering bill that would tax vape products

(KPTV) – State lawmakers are considering legislation that would have a broad impact on the vape industry. Two bills currently in the House Committee on Revenue would open the door to taxes on vape products, which are not currently taxed. House Bill 2123 expands the state’s definition of tobacco products to include nicotine inhalants, while House Bill 2159 would establish a 95% tax on the distribution of nicotine inhalants. “I think it would do great damage to the industry, and at least a small family-owned business like us, we can’t endure a huge tax,” said Lindsay Rehmann, who manages Digital … Continue reading State lawmakers considering bill that would tax vape products

Bill would raise e-cigarette taxes, tobacco age to 21

A bill filed Monday (Feb. 25) would enact e-cigarette and cigarette paper taxes to fund a National Cancer Institute-Designated cancer center in Arkansas. It also would dedicate to that fund all revenues derived from the sale of medical marijuana. And it would increase the minimum age for purchasing tobacco and e-cigarette products to age 21. House Bill 1565 by Rep. Andy Davis, R-Little Rock, would impose a tax of 10 cents per milliliter of e-liquid sold. It also would impose a tax of 50 cents per package of 32 sheets of cigarette paper used for hand-rolling cigarettes. Those revenues would … Continue reading Bill would raise e-cigarette taxes, tobacco age to 21