Which States Impose Taxes on Vaping Products?

Posted on Jun 29 2018 - 7:17pm by Business Day TV

Man using an e-cigaretteElectronic cigarettes have become a popular alternative for traditional tobacco items, which led some states in the U.S. to impose excise taxes on vapor products.

However, most states are yet to follow suit on implementing state-wide similar regulations. In Utah, consumers in certain areas can still purchase electronic cigarette cartridges and other products without having to pay extra for taxes.

Vapor Taxes

Minnesota has the biggest tax rate for vapor products at 95% of the wholesale value, while California and Pennsylvania impose 65.08% and 40%, respectively. Per-unit taxes are the highest in Chicago, where excise rates cost $0.80 with a $0.55 rate per milliliter.

The lowest per-milliliter rate is currently at $0.05 in Delaware, Kansas, Louisiana and North Carolina. Despite the taxes, people have chosen to patronize e-cigarettes to cut back on their nicotine intake and possibly kick the habit in the long term.

While vaping products allow you to smoke in more places than a common tobacco smoker, some states have banned the use of e-cigarettes in public places.

Statewide Ban

New York banned e-cigarette smokers from any indoor public establishment since Gov. Andrew Cuomo enacted a new law in November 2017. It will fall under the Clean Indoor Air Acts implementation across the state.

However, people can still use vaping products in their own homes, hotel rooms and retail tobacco shops. The recent ban means that New York joined California, Connecticut, New Jersey and Utah as the other states that have restricted vaping in indoor public spaces.

Despite high taxes in some states, the popularity of e-cigarettes will not likely fade anytime soon. More people have preferred using them as a cheaper alternative to cigarettes. When choosing a supplier, it’s best to talk to those who have a credible, well-established business.

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