Top ten U.S. states with excise taxes on e-cigarettes

Blue Hole New Consumer Report, February 26 news, according to foreign reports, 30 US states and the District of Columbia began the new year on January 1 to tax e-cigarette products and e-cigarettes. This is rapid growth in just a few years. For example, in 2015, only three states and the District of Columbia imposed taxes on vaping products. But since then, a steady stream of states have either expanded existing tobacco excise taxes to include vaping products or passed tax laws specifically taxing vaping or vaping juice.

This is a huge change for e-cigarette product sellers in a short period of time. A decade ago, a retailer of vaping products only had to worry about taxes in their state. Today, every shipment a retailer makes across state lines may be subject to varying degrees of excise duty — or even none at all. There are many federal restrictions on the sale of vaping products, but at least for now, there are no federal-level taxes on vaping products in the United States. Instead, vaping product sellers must collect state excise taxes on their products, although two states have vaping-specific sales taxes. Some states also allow local jurisdictions to establish their own vaping taxes. For e-cigarette retailers selling online, the need to comply with the laws and regulations of the state where customers are located, including sales tax-linked requirements, adds to the complexity. At this point, it’s easier to list states that don’t have excise taxes on vaping products than states that do.

According to the Federation of Tax Administrators, states with no e-cigarette taxes as of February 2022 are: Alabama, Arizona, Arkansas, Florida, Hawaii, Idaho, Iowa, Michigan states, Mississippi, Missouri, Montana, Nebraska, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee and Texas.

 

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