The local government decided to put a high tax on vape products in Vermont to generate more revenue. This caused a stir among the vaping community, with many arguing that this will only harm businesses and discourage people from using vaping products altogether.
The tax includes a 92% wholesale tax on all vaping products, including e-liquids, hardware, and accessories. This is in addition to the state’s existing 6% sales tax. The total tax rate for vaping products will now be 98%. This is the first time in the country that such a high tax has been placed on vaping products.
What Are the New Taxable Products?
In this tax move, Vermont has become the first state to tax, not just electronic cigarettes, but also all vaping products and accessories. This includes e-liquids, mods, tanks, coils, drip tips, and batteries.
The tax will be levied on all nicotine products, including those with zero nicotine. This means that even if you don’t use nicotine, the state of Vermont will still tax your vaping device. This seems to be a dangerous trend that could discourage people from using vaping products altogether, as the tax burden will be too high.
What Is the Purpose of the Tax?
The state of Vermont says that the purpose of this new tax is to "discourage the use of tobacco products, including e-cigarettes, and generate revenue for the state." However, many people are skeptical of this claim, as the tax seems more about generating revenue than discouraging tobacco use.
In addition, the state says that the new tax will help offset the cost of health care for those affected by tobacco use. However, many argue that this is not a valid reason for taxing vaping products, as they are not tobacco products and do not pose the same health risks.
What Is the Impact of the Tax?
The tax is expected to generate $8 million in revenue for the state of Vermont in the 2019 fiscal year. This money will fund various programs that help people quit smoking. However, many argue that this tax will hurt businesses and discourage people from using vaping products. This could lead to a state revenue decrease and an increase in smoking rates.
Only time will tell if this new tax will have the desired effect or not. However, it is a controversial issue that is sure to cause debate for some time to come. It is a challenge that the vaping community will have to face in the coming year.
The community must keep a close eye on the consistent increase in taxes for vaping products. Currently, the government’s primary purpose for these taxes is to generate revenue rather than discourage tobacco use.
This could hurt businesses and people who use vaping products. It’s a new trend that will soon become more common across the country. Contact Emporium Tobacco & Gifts if you have any questions. We’ll be happy to help you find what you need while explaining the new tax issues.