Several states and even localities have either proposed or implemented taxes on vaping products. “The variety of taxing methods and wide range of rates indicates that there is little consensus on the best way to tax vapor products.” says the article.
Different types of taxes at different rates
Minnesota has the highest tax at 95%, while California has the lowest at 27.3%. In terms of per unit tax, Chicago has the highest at $0.80 plus a per milliliter rate of $0.20, while Louisiana and North Carolina have the lowest per milliliter rate at $0.05. For example, localities in Alaska, Illinois, and Maryland have their own excise taxes even if the state does not, and while some tax a percentage per wholesale value, others tax per unit or milliliter of e-liquid.
From those states that tax the wholesale value, Minnesota levies the highest at 95%, followed by the District of Columbia at 65%, while the lowest wholesale tax is found in California at 27.3%.
In terms of per unit tax, Chicago has the highest tax at $0.80 plus a per milliliter rate of $0.20, while Louisiana and North Carolina have the lowest per milliliter rate at $0.05.
High taxes drive consumers to the black market
The article went on by referring to the data which indicates that vaping is at least 95% safer than smoking. However, added the article, this “difference in health risk” is not reflected in the way the products are taxed as vaping products are subjected to the same taxes as regular cigarettes.
Additionally, in line with what many public health experts have said, data has shown that consumers’ response to raising prices on vaping products or making them unavailable is turning to contraband products.
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