An Inventory Of E-cigarette Tax Policies in Various States in The United States
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An inventory of e-cigarette tax policies in various states in the United States
Currently, the United States does not impose federal taxes on e-cigarette products, but states have formulated their own e-cigarette tax policies. This article will take you to understand the e-cigarette tax policies of each state in the United States.
Currently, the United States does not impose federal taxes on e-cigarette products, but states have developed their own e-cigarette tax policies. As of early 2024, a total of 32 states, the District of Columbia, the Commonwealth of Puerto Rico, and some cities and counties in the United States have taxed e-cigarette products. The following is a one-by-one review of the tax policies of each state in the United States:
1. California
California's wholesale tax on "other tobacco products" is set annually by the state's Board of Equalization. It reflects a percentage of all taxes levied on cigarettes. Originally this amounted to 27% of the wholesale cost, but e-cigarette taxes increased significantly after Proposition 56 increased the cigarette tax from $0.87 to $2.87 per pack. Starting July 1, 2023, the tax rate on all nicotine-containing products will be 56.32% of wholesale cost.
On July 1, 2022, California added a retail tax to the existing wholesale tax, imposing a 12.5% tax on all nicotine-containing e-cigarette products, including products purchased online from retailers in other states.
2. Colorado
Colorado's e-cigarette tax was approved by voters in 2020 and launched in 2021. It will initially be 30%, rising to 35% in 2022 and 50% in 2023. It will rise to 56% in 2024 and will eventually rise to 62% in 2027.
For products granted a Risk Modification (MRTP) by the FDA, taxes can be reduced by 50% (but no liquid e-cigarette product manufacturer has applied for MRTP authorization).
3. Connecticut
The state imposes a two-tier tax on nicotine-containing e-cigarette products: a $0.40 per milliliter tax on e-liquids in closed-system products and a 10% wholesale tax on open-system products, including bottled e-liquids and open devices. Tax.
4.Delaware
There is a $0.05 per milliliter tax on e-liquids containing nicotine.
5. Georgia
There is a $0.05 per milliliter tax on e-liquids in closed system products and a 7% wholesale tax on open system devices and bottled e-liquids. The tax applies to products with or without nicotine.
6. Hawaii
A 70% wholesale tax on all vaping products.
7. Illinois
A 15% wholesale tax on all vaping products. The tax applies to products with or without nicotine. In addition to the statewide tax, Cook County and the city of Chicago (in Cook County) have their own e-cigarette taxes:
Chicago imposes a $1.50 per unit tax on any vaping product that contains nicotine (bottled e-liquid or prefilled device) and a $1.20 per milliliter tax on the e-liquid itself (Chicago vapers must also pay $0.20 per milliliter) USD Cook County taxes). Some vape shops in Chicago sell zero-nicotine e-liquid and DIY nicotine to avoid the hefty tax.
Cook County imposes a tax of $0.20 per milliliter on products containing nicotine.
8. Indiana
A 15% tax on gross retail sales of all e-cigarette products, regardless of whether they contain nicotine.
9.Kansas
All e-liquids are taxed at $0.05 per milliliter. The tax applies to products with or without nicotine.
10.Kentucky
A 15% wholesale tax is imposed on bottled e-liquids and open system devices, and a $1.50 per unit tax is imposed on prefilled pod devices and pods. The tax applies to products with or without nicotine.
11. Louisiana
There is a $0.15 per milliliter tax on e-liquids containing nicotine.
12. Maine
A 43% wholesale tax is imposed on all vaping products. The tax applies to products with or without nicotine.
13. Maryland
A 6% retail sales tax is levied on all open e-cigarette products (including nicotine-containing e-liquids), and a 60% retail tax is levied on nicotine-containing e-liquids in containers (refillable or disposable) with a capacity of less than 5 ml. Tax.
In addition to state taxes, Montgomery County imposes a 30% wholesale tax on all vaping products, including devices that do not contain e-liquid.
14. Massachusetts
A 75% wholesale tax on all vaping products. The tax applies to products with or without nicotine. The state law requires consumers to show proof that their vaping products have been taxed or they will be confiscated, with fines of $5,000 for a first offense and $25,000 for subsequent offenses.
15. Minnesota
In 2011, Minnesota became the first state in the United States to tax e-cigarettes. The tax was initially 70% of wholesale costs and has now been increased to 95% of wholesale costs. For bottles of e-liquid produced in Minnesota, only the nicotine itself is taxed.
16.Nebraska
Nebraska has two levels of tax, depending on the size of the e-liquid container (or prefilled e-cigarette). For products containing less than 3 ml of e-liquid, the tax is $0.05/ml. A wholesale tax of 10% applies to products containing 3 ml or more. The tax only applies to products containing nicotine.
In addition to state taxes, Omaha's vaping products are subject to the city's 3 percent tobacco tax.
17. Nevada
A 30% wholesale tax on all vaping products. The tax applies to products with or without nicotine.
18. New Hampshire
A wholesale tax of 8% is imposed on open system e-cigarette products (including nicotine-containing e-cigarette oil) and a wholesale tax of $0.30 per milliliter is imposed on closed system products.
19.New Jersey
New Jersey imposes a tax of $0.10 per milliliter on nicotine e-liquid, 10% of the retail price on bottled e-liquids, and 30% of the wholesale price on devices.
20. New Mexico
New Mexico imposes a two-tier tax on e-cigarette oil: a 12.5% wholesale tax on bottles of e-cigarette oil; and a $0.50 tax on each disposable e-cigarette or cartridge with a capacity of less than 5 milliliters. The tax applies to products with or without nicotine.
21. New York State
A 20% retail sales tax on all vaping products. The tax applies to products with or without nicotine.
22. North Carolina
There is a $0.05 per milliliter tax on e-liquids containing nicotine.
23. Ohio
There is a $0.10 per milliliter tax on e-liquids containing nicotine.
24. Oregon
A 65% wholesale tax is imposed on all non-cannabis "inhalation delivery systems," including hardware and its "components" (including e-cigarette oil). The scope of the tax also includes heated tobacco products such as IQOS, but excludes all vaping products sold at licensed cannabis dispensaries. The tax applies to products with or without nicotine.
25. Pennsylvania
A 40% wholesale tax is imposed on e-liquids and devices containing e-liquids. The tax applies to products with or without nicotine.
26. Utah
A 56% wholesale tax is imposed on e-liquids and prefilled e-cigarettes. The tax applies to products with or without nicotine.
27. Vermont
A 92% wholesale tax on e-liquids and devices. The tax applies to products with or without nicotine.
28. Virginia
A tax of $0.066 per milliliter is imposed on e-liquids containing nicotine.
29. Washington State
It is taxed at $0.27 per milliliter and $0.09 per milliliter for volumes over 5 milliliters. The tax applies to products with or without nicotine.
30. West Virginia
All e-liquids are taxed at $0.075 per milliliter. The tax applies to products with or without nicotine.
31. Wisconsin
The tax of $0.05 per milliliter is only imposed on e-liquids in closed system products. The tax applies to products with or without nicotine.
32. Wyoming
A 15% wholesale tax is imposed on all vaping devices and nicotine-containing e-liquids.
33. District of Columbia
The U.S. Capitol classifies e-cigarettes as "other tobacco products" and taxes the wholesale price of e-cigarettes at a rate tied to the wholesale price of cigarettes. The tax is currently set at 91% of the wholesale cost of vaping equipment and nicotine-containing e-liquids.
34. Commonwealth of Puerto Rico
There is a tax of $0.05 per milliliter on e-liquids and $3 per unit on e-cigarettes.
35. Alaska
There is no state tax on e-cigarettes in Alaska, but some cities in the state are imposing taxes:
The Borough of Juneau, Northwest Arctic Borough and Petersburg Borough impose the same 45% wholesale tax on nicotine-containing products;
Anchorage Borough imposes a 55% wholesale tax;
The Matanuska-Susitna Borough imposes a 55% wholesale tax.
