Proposed Tax Increases on E-cigs and Vapes

Filed in News & Politics by on September 1, 2017 4 Comments

For ages we have heard about increased taxation on combustible cigarettes, causing prices in some areas to skyrocket. The aim is in part to deter people from smoking harmful tobacco products (which we can all agree on).

 

But now, e-cigs are in the line of fire. States are proposing steep changes in taxation.

 

A Washington state bill in the House proposes e-cigs and vape products should be taxed just like tobacco products. Currently, in many parts of the state, people are paying an average of about 9.5% sales tax on vape products, the measure proposes a 60% tax.

 

In Nevada, Las Vegas Assemblywoman Irene Bustamante Adams proposed a tax of five cents per fluid milliliter of consumable product.

 

The Las Vegas Sun reports,

Nevada’s current excise tax charged on all tobacco products is $1.80 for a pack of 20 cigarettes or $2.25 for a pack of 25. Other tobacco products are at 30 percent of the wholesale price, which is what Bustamante Adams said she initially was going to propose for vapor products that contain nicotine.

She told members of the Assembly committee on taxation that she negotiated with industry representatives and decided to use the same tax rate that was implemented in North Carolina in 2014. Louisiana also uses this rate, she said.

 

In New York, the tax on vapes and ecigs would increase revenue for the state where tobacco sales have fallen. The increase proposed would raise the price of a 50ml bottle by about $5 each. That’s a substantial jump, which could bring unforeseen consequences.

 

Why do people oppose the tax? Local businesses wouldn’t be able to survive if customers can’t afford the astronomical prices from buying from a reputable source. They could potentially source them from unverified retailers to keep their costs down.

 

In Vegas, opponents were concerned that people would be deterred from buying products that could cost them anywhere from $3 to $8 more. Local businesses fear these taxes being implemented would drive them to bankruptcy.

 

According to the Seattle Times, “California, Kansas, Louisiana, Minnesota, North Carolina, Pennsylvania, and West Virginia and Washington, D.C., currently tax e-cigarettes and vape products, according to the National Conference of State Legislatures. At least 15 other states considered legislation to tax e-cigarettes this year including Alaska, Oregon and Washington.”

 

Although these proposed tax discussions are on a local and state level (and may not be of worry for where you live today), a concern for many is that it could sweep across and reach a federal level, and the imposed taxes could find their way to sales elsewhere. That is a hefty price jump for vape and ecig customers.

 

What do you think of the proposed tax increases?

Comments (4)

  1. Peggy says:

    I see it as government as usual! Trying to get money where they think they can. Even though vaping is MUCH healthier! But,,,they are also still trying to find a way to make money by all of us being online. Here’s hoping the people will come out in force to keep the money grubbing pigs at bay.

  2. Tony Always says:

    Do I understand it correctly. They want to increase the taxes from 9.5% to 60%?! Could they actually get through with this?
    If yes that would terrible!

  3. David King says:

    I read your blog on E-cigs and Vapes.Its very informative.Thanks for sharing

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