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Which States Might Be Increasing Vape Taxes Soon?

E-Cigs MSA Money States Taxes vaping

The vaping industry has been in the news quite a lot over the last few months lately, and unfortunately, it hasn’t been for good reasons, at least as far as vapers are concerned.  Currently, we’re dealing with new legislation that bans flavored e-liquid cartridges, in addition to an increase in the age requirement for obtaining nicotine products. Now, more and more states are suggesting raising the taxes on vaping products, and all of this is supposedly influenced by a need to curb teen vaping.  Or, so legislators say.

So, what’s going on with the taxes on vaping, and does it impact your state?  Today, we’ll be attempting to answer these questions as thoroughly as possible, while also demonstrating the real probable motivations behind raising the taxes on vaping products, state by state.

Increased Taxes Throughout the United States

As it stands, the United States does not have a tax on vaping products.  In other words, there is no federal tax on e-liquids, e-cigarettes and all other vape-related goods.  However, states have been given authority to take matters into their own hands and taxing goods as they see fit.  

Now, for a while, vapers had little to complain about regarding the taxes on vaping products.  After all, with such astronomical taxes on cigarettes across the country, vaping remained far more affordable due to relatively low taxes.

However, states are becoming more proactive, or at least so they claim, against what they consider to be an epidemic of vaping among minors.  And, one way that they’re attempting to curb teen vaping is by raising the taxes on vaping products. This shouldn’t come as to much of a surprise after states have been issuing flavor bans, one by one, due to the fear-mongering of news outlets claiming that e-cigarettes cause respiratory illnesses, despite the fact that these illnesses have been completely linked to THC cartridges which have absolutely nothing to do with the commercial vaping industry.

Just several days ago, it was announced that Minnesota has introduced a tax on vaping products, being one of over 20 states to do so.  What’s interesting is that data shows that after Minnesota began taxing e-cigarettes and the like, the number of tobacco cigarette users increased.  Wouldn’t that be an undesirable outcome, as we know that cigarettes kill hundreds of thousands of people each year, while no such data regarding vaping exists?

Of course, the amount of taxes placed on vaping products differs from state to state.  In fact, Vermont recently placed a 92 percent tax on e-cigarette products, which is pretty astronomical.  It goes without saying that these high taxes are going to hurt the vaping industry, which is deeply concerned with trying to get people off of cigarettes for good.  

Are These States Trying to Curb Teen Vaping?

Vapers who have been paying attention to news stories regarding the industry don’t have to reach too much in order to see hypocrisy among elected officials who advocate against vaping.  According to legislators, the changes in law to make vaping less accessible are directly linked to a desire to curb teen vaping. Yes, it’s true that minors have been able to access vaping products, although this is really not the fault of the industry, but individual vendors who do not enforce the law regarding the age limit.  The vaping industry has never attempted to market their products toward teenagers, although it’s understandable that certain flavors of e-liquid products may appeal to young people.

So, are these new vape taxes truly motivated by a wish to stop young people from using e-cigarette products?  Well, of course, we can’t say for certain whether or not this is the case. But what we do know is that states are losing money on vaping.  For one thing, states make a good amount of money off of the high taxes that are placed on cigarette products. The more people abandon cigarettes and switch to vaping, the less revenue states receive from the taxes on cigarettes.  So, it’s easy to understand why states would have financial interest in trying to keep people hooked on tobacco.

Then, there’s MSA money, which refers to the Master Settlement Agreement from back in 1998.  After numerous lawsuits hit the tobacco industry, the five leading tobacco companies made a deal with 46 states that if they dropped the lawsuits, the states would receive hundreds of billions of dollars to be allocated toward various means to get state citizens off of cigarettes.  The problem is that states tend to abuse this money by allocating it toward other things, which means that they’re heavily dependent on this money. And, guess what? The money that each state gets per year from the MSA is determined by how many people are using cigarette products. The more cigarettes are sold in a state per year, the more money the state gets from the agreement.  So, it’s safe to conclude that these new taxes on vaping products are an effort to ensure that states keep getting money from big tobacco sales.

Ulterior Motives Behind New Taxes On E-Cigs and Other Vaping Products is Crystal Clear

Whether altruistic or not, these taxes directly harm the vaping industry, and individual vapers even more.  However, for the time-being, it seems inevitable that taxes on vape products will rise as legislation cracks down on vaping more and more throughout the country.



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