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Vape Taxes: Coming Soon To Your Home State?


 

While they may be a bit late to the game, governments from state to local have recently been eyeing the explosion in popularity of vapor products as a potential source of new revenue.

 

This Tuesday, Californians will vote on a proposal to raise cigarette taxes by $2 per pack – the bill would also legally define vapor products as tobacco and impose a similar tax on e-liquids. Pennsylvania, at one point poised to implement a crippling 40 percent tax (yes, you read that right) on vaping, instead appears to be settling on a less-onerous 5 cents per milliliter of e-liquid.

 

What's behind this? One theory – as more and more people abandon tobacco products like cigarettes, the 46 states that took part in the Tobacco Master Settlement Agreement, a 1998 contract wherein Big Tobacco agreed to massive payoffs to the states as an offset to the public health burdens created by their products. As less tobacco revenue comes in, states have to increase taxes on tobacco products or look elsewhere (read: your vape) to offset falling revenues.

 

By the beginning of 2016, at least 27 states and the District of Columbia had explored some form of vape tax, with some local cities, counties, and townships, particularly in states with a heavy anti-tobacco presence, aiming to get in on the action.

 

The biggest issue with these myriad overlapping laws is enforcement, particularly in the age of e-commerce. It remains to be seen, though, how enforceable some of these laws will be beyond the boundaries of the jurisdictions that enforce them – Amazon, for instance, has run a long-standing battle over what tax rates it must collect on products shipped across state lines.

 

Not to worry, though. At Breazy, we make it our job to stay on top of the ever-changing landscape of vape laws, and ultimately as the seller we're responsible for ensuring that our business operations are above-board and that you don't pay any more than you need to for your vaping products. To this end, we're fully licensed to sell to customers in Pennsylvania and anywhere else where such specialty registration is required. As the world of vaping continues to evolve, we'll be here to keep you up-to-date on the latest (and not always greatest) developments.