Learn About The Vape Taxes in Your State
If you're considering vaping, you might be wondering about vape taxes in your state. Some states require a vape tax, and others don't. For example, Ohio requires a $0.10 per milliliter tax on e-liquids and cartridges. For more information, you can check out the Ohio Department of Taxation's website. Other states charge a tax on vapor products, but not on chargers.
Vape Taxes in Virginia
The state of Virginia is considering a new law that will charge a tax on tobacco products. The bill, House Bill 1199 and Senate Bill 748, will be implemented on July 1, 2022. The law requires remote retail sellers to register with Virginia Tax and calculate tax on tobacco products based on the actual cost of the products sold. The tax will be applied to sales of pipe tobacco, cigars, and moist snuff, including snus and dissolvable tobacco products.
In addition to tobacco products, Virginia also taxes roll-your-own tobacco and bidis/beadies. The tax will be 10% of the manufacturer's selling price. Business owners must register with the state's tax agency to avoid penalties. The tax is deposited into the Virginia Health Care Fund.
Vape Taxes in Washington
If you're thinking about starting a business in Washington, you'll want to read the tax rules carefully. The state has set up a vapor products tax, and all vapor products sold in the state must be reported to the state. The tax will be collected from sales reported under the retail sales tax classification. In addition to reporting purchases, you must also report any selling or manufacturing activity.
The Washington state legislature recently passed a new two-year state budget, and its governor signed a bill imposing a vape tax. Under the new tax, vapor products containing no nicotine will be taxed at 27 cents per milliliter. Open-system vapers will be taxed nine cents per milliliter. The revenue generated will go to public health and cancer research.
Vape Taxes in Connecticut
The Connecticut state legislature is examining an excise tax for e-cigarettes, liquids, and supplies. The proposed tax would be applied to the wholesale price of vaping products. However, e-cigarette products are already subject to the state's sales tax. Nevertheless, many e-cigarette users and retailers expressed outrage over the tax proposal. In response, they reached out to legislators in Hartford.
While the bill was initially passed, it failed to gain enough support to become law. It was introduced as an amendment to a bill that would have banned the sale of flavored tobacco products. During the debate, the bill was watered down, and finally dropped. The bill was a step in the right direction, but still is a long way from becoming law.
Vape Taxes in New Jersey
The state of New Jersey is considering a tax on vaping products. The measure is sponsored by state senators who are concerned with public health. If passed, the tax could raise more than $218 million per year for anti-smoking initiatives. The money would also be used for support systems for children with emotional needs. However, the proposed legislation has encountered opposition. Some lawmakers have called for a ban on flavored e-liquid and an outright ban on the sale of menthol cigarettes.
As part of the legislation, New Jersey retailers will be required to collect a tax on e-liquid containing nicotine. The tax will be applied at the retail level and will be based on the retail price of the product.
Vape Taxes in Indiana
Indiana lawmakers have passed a new vape tax bill that will go into effect in July. The bill aims to reduce the state's tax rate on e-cigarette cartridges from 25 percent to 15 percent. The new tax will apply to both open and closed-system products. The state estimates it will raise between $5.1 million and $9.3 million a year.
The tax is designed to discourage vapers from changing to another brand of e-cigarette. Previously, Indiana had a 25 percent vape tax on all wholesale e-cigarette cartridges and additional vaping products. But after a journalist in Indianapolis exposed a monopoly involving an e-liquid company and corrupt politicians, the state legislature reversed that tax. This resulted in many vaping businesses closing and moving out of state.
