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E CigsTHE NEW PA VAPOR TAX

September 15, 2016by ecigg0

At Ecigs International, we’re proud of being both a local and national supplier of vapor products and wholesale e-cig liquid . We believe in the power of vapor technology, and we see proof of it in the smiles of our customers every single day. Vapor products aren’t a trend or a fad; they’re a movement, one that millions across the country have counted on for years.

We find it extremely disappointing that this July, the elected lawmakers of Pennsylvania voted to levy a new tax on all vapor products. Undoubtedly, this new tax will harm local businesses that have only recently begun flourishing in their communities and comes as a huge blow to the growing industry of e-cigarettes.

In July, The PA state government voted to pass a new tax plan that would disproportionately affect younger citizens. The state budget had been at an impasse for quite some time, and lawmakers finally reached an agreement to fund the $31.5 billion with new taxes aimed at tobacco products, vapor products, and digital downloads.

The highlights of the new taxes are as follows:

  • An additional $1 tax on cigarettes
  • A 55% tax on loose tobacco products (rolling tobacco etc.)
  • A 6% sales tax on all digital downloads (Netflix, Apple Music, etc.)
  • A 40% tax on all vapor products(retroactive)

This is one of the largest tax increases in recent decades. The tax goes into effect Oct. 1 and will require that every vapor product retailer pays an immediate 40% tax based on the wholesale value of every single vapor product in their inventory; a massive financial burden for our vape shop in Ambler, PA and vape shops across the state.

In addition to the bold and harmful taxes on businesses, vapers will now be at serious risk of fines or even incarceration. According to Vaping360, the penalties for evading the 40% tax online or out of state include up to a $5,000 fine or up to 5 years in prison. That means by purchasing a mod online that doesn’t charge the tax, or owning a tank purchased outside of the state, the buyer can go to jail if they’re a PA resident.

It should go without saying that this new legislation is unacceptable. It serves to harm local businesses, those looking into cigarette alternatives and especially those already at a financial disadvantage. These new taxes come on the heels of the already burdensome FDA ruling (which you can read more about on our blog).

We’re urging our customers to reach out to their senators and representatives and let them know their feelings on these new taxes that go into effect Oct.1. To learn more about what you can do, stop into one of our stores.

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