Up to date Useful resource – Map of U.S. Vaping Taxes

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Updated Resource - Map of U.S. Vaping Taxes

Our tax foundation friends have released a new map that was updated on June 1, 2020 and includes excise duties levied by various states on the sale of steam products.

Janelle Cammenga from the Tax Foundation writes:

Steam products have enjoyed increasing popularity since they entered the market in 2007, and the taxation of such items followed. Many states may also seek steam and other excise duties to close the budget gaps caused by the coronavirus crisis. While these areas can represent untapped sources of income for many countries, taxing these activities is unlikely to result in high income in the short term. Vapor products can deliver nicotine, the addictive component of cigarettes, without the burning and inhalation of tar, which is part of cigarette smoking and is therefore considered to be significantly less harmful than conventional cigarettes.

Steam products and cigarettes can be economical substitutes. This means that high excise duties on harm-reducing steam products can harm public health by forcing vapers to smoke again. A recent publication found that 32,400 Minnesota smokers were prevented from quitting after the state introduced a 95 percent excise tax on steam products.

Currently, twenty-one states and the District of Columbia have waived taxes on vaping products. There is no federal tax on vaping products. As shown on the map, the states have chosen different tax routes.

There is little agreement from state to state about which specific steam products are subject to tax. For example, Minnesota's 95% wholesale tax only applies to products that contain nicotine, while other states such as Vermont have much broader definitions that include standalone devices that are sold without nicotine.

With flammable cigarettes killing hundreds of thousands of Americans each year, the American Vaping Association does not support the introduction of new taxes on the sale of harm reduction products.

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