Prop 56: California’s New State Excise Tax Is Here

November 8, 2016- the day California’s Prop 56 was approved.  

Okay. What’s done is done. The powers that be have opened Pandora’s box and now it’s time for all the vape loving citizens of the fee world to deal with the results. Well, maybe not the entire free world, but definitely for all you Californians.

So here’s what the new measure calls for. As of April 1, 2017, every pack of cigarettes sold in the state of California will see an added state excise of $2.00. In addition, a 27.3% tax will be applied to cigars, hookah and electronic cigarettes. This change, however, is set to take effect on July 1, 2017. Revenue from the tax increase would be applied to many areas, but primarily to expand spending on health care for low-income California residents.

Approximately three months prior to the passing of Prop 56, the FDA categorized vape juice as an official tobacco product, thus subjecting the “electronic nicotine delivery system” also known as ENDS to the same tax increase. However, since packs of cigarettes are not the same as bottles of vape juice, the rate of excise tax to vapor products has been set at 27.3%. What this all means is that a twenty-dollar bottle of vape juice will now cost the consumer upwards of twenty five dollars. Retailers and vendors are now faced with the challenge of adhering to the new tax law while keeping the customer as a priority.

Moving forward as we are, it must be mentioned that not all vape products are subject to the new tax measure. Nicotine free products such as mods, tanks and coils, if sold separately, will not be subjected to the tax increase. In addition, any tobacco products approved by the FDA as a “tobacco cessation product,” which are almost universally issued by drug companies, are exempt from the tax.

Oppose the Excise Tax? Want your voice heard? 

If you oppose this increase in taxes on vape products, then be sure to write to your California State Representatives to make your voice heard loud and clear. To locate your representative, click on the link http://findyourrep.legislature.ca.gov/

The Right 2 Be Smoke-Free Coalition is dedicated to challenging all unconstitutional State and Federal laws related to the vaping industry.

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The Social Media & Content Coordinator at Mt Baker Vapor. I enjoy traveling, extreme sports, and camping with my two dogs. I am an ASU graduate with a degree in marketing & sustainability. I believe you shouldn't fear failure, but fear missed opportunities for not trying!
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Author: Corey Gefroh

The Social Media & Content Coordinator at Mt Baker Vapor. I enjoy traveling, extreme sports, and camping with my two dogs. I am an ASU graduate with a degree in marketing & sustainability. I believe you shouldn't fear failure, but fear missed opportunities for not trying!

12 thoughts on “Prop 56: California’s New State Excise Tax Is Here”

  1. What a rip more money glad I don’t live there but I’m sure it will be a monkey see monkey do thing then all states will follow

  2. Isn’t it about time you start taxing someone else? How about people who color their hair, how about freaks who wear their pants off the butt?! How about those who feel it necessary to bang “pipes” in their vehicles. It’s deafening and we don’t care to hear it or damage our hearing? Vaping is NOT illegal, nor is smoking cigarettes. First, the name ‘electronic cigarette’ was a dumb idea. It quickly related to smoking a cigarette. Therefore created a stigma! And yes, once one state does this it will spread like a virus! Suck you taxes out of someone else.

  3. Won’t be long before California starts taking ALL their resident’s money. It’s called Socialism and it’s right around the corner. California’s been in big trouble (awful leadership) for many years. It should prolly just fall into the sea.

  4. Boy this is very unfortunate people. I don’t understand how Californians can approve attacks like this it’s just ridiculous. Kind of like how ridiculous it is that Trump is even president but hopefully that will Rectify itself very soon. This bill just goes to show how stupid Californians are.

  5. I live in California and this is one of the worst places to live in that you could ever live in! They tax everything as far as they possibly can. I’m surprise they don’t make you wear a mask so they can meter how much carbon dioxide you produce and tax you for it!! FU California

  6. That tax is wrong, it is wrong for e juice and tobacco alike. The funds will not go anywhere good, just in politicians pockets just like other taxes. California government is so crooked it is ridiculous

  7. Having grown up and retired at 65 in Calif. I saw more and more, and even more people there not only looking for a free ride, but think said free ride is a God given right that justifiably should be paid for by someone else. Yes, we’d all be better off if Cal. would take its mountain of debt with it as it slides into the sea. Don’t look for any quick changes, fact is the majority of Californians think they are doing just fine.

  8. All politicians share how they create revenue (taxes). If you think for one minute that your state won’t want to add hundreds of millions to their budgets just like California…Think Again. I was born here in Ca. but have never been a liberal or socialist. It all makes me very sad. My California State Representatives are the liberal/socialists that put this tax together. Writing them, what a joke, my voice falls on deaf ears. Enjoy your freedoms but watch your back. Vote for conservatives or join us in California.

  9. Every time I hear about cali doing something douchey to its people I always think of the song Ænema by Tool….

  10. So essentially I have until July 1st before this tax starts? Guess I m going on a shopping spree soon. Pretty upset about the tax, didn’t vote for it but know many non smokers who did. Question though, what if the vape juice is nicotine free? Wouldn’t it or shouldn’t it be exempt from the tax?

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