Vermont’s huge 92% excise tax law goes into effect July 1, and it marks one of the highest taxes on e-cigarette products in the nation. The “Tobacco Products Tax” includes e-cigarettes, vaping hoodies, vaping liquid cartridges, e-liquid and vaping device repair parts. Licensed wholesale dealers “must pay on a monthly basis and file a Tobacco Product Tax From (even when no tax is due) no later than 15 days after a month concludes,” Burlington Free Press reports. Pre-existing inventory is exempt, and retailers must keep invoices for at least three years.
Also passed is a rushed vape “sin tax’ in Washington STate, which will tax $0.27 per milliliter on closed vape systems and $0.09 on open systems. JUUL replacement pods will increase $1 more ad a 60 ml bottle of e-liquid will go for $5.40 more. Nicotine strength does not factor into the tax, a move that Soupwire.com says is “a bad deal for vapers and small business owners in Washington State.
In other tax news across the nation, New York State officials passed a 20% vapor tax on nicotine liquid containing products that are not registered with the Food and Drug Administration as medical devices or products. Michael Frennier of the New York State Vapor Association said, “This tax could reverse the progress our industry has made in reducing tobacco smoking rates in NYS over the last decade.”
There is also movement in Arkansas, where the legislature passed SB571 18-14 to tax nicotine-containing e-cigarettes. Three senators did not vote on the measure, which would place a 20% excise tax on cigarettes, amounting to 80 cents a pack — e-cigarettes would then be placed with the same tax that amounts to 67%. The bill heads to the House Revenue and Taxation Committee.
There is movement in Boston, where Attorney General Maura Healey gave a speech before the New England Council calling for a ban on flavored vaping products and taxation on e-cigarettes. And, in Colorado, the House Finance Committee has approved HB1333, which would tax e-liquids containing nicotine at 62%. Residents will vote on the measure in November — a cigarette tax was rejected in 2016 — so be sure to keep an eye on this one.
In Kentucky, lawmakers are looking at a tax on e-cigarettes, but are undecided on what the proposed rate would be. The next state budget session is January 2020. The Nevada Senate has introduced SB263 to the joint Assembly Taxation and Senate Revenue Committees, which would tax wholesale vaping products at 30%. A 5 cents per milliliter of e-liquid bill died last session.
North Dakota legislators withdrew HB1495, which would have taxed each e-liquid milliliter 10 cents. But now, they are mulling other measures over the next two years that could tax both e-liquids and devices. Indianapolis lawmakers will be spending their summer looking to tax CBD oil and vaping products. No sessions have been set yet; a former e-liquid tax died in the Senate previously.
Finally, we head to Maine, where the state’s Taxation Committee has passed a bill that would tax “non-cigarette tobacco products” at 43% of the wholesale cost. The current tax is 20%.