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 $1.00. 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.