Alabama Governor proposes taxing vapor products

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Bill Godshall

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Alabama Gov. Bentley proposes taxing vapor products, increasing cigarette tax from $.425 to $.675/pack and proportionate OTP tax hike in special budget session
Lawmakers receive details for Alabama governor's budget proposals | Local News | Times Free Press

The news article provided no details about the Gov's vapor tax proposal, but I suspect it was inspired by Reynolds. Since Alabama has among the lowest OTP tax rates in the country (and since the Gov has proposed an OTP tax increase proportionate with the cigarette tax hike), I suspect his proposed vapor tax is / will be modest (but should still be opposed).
 

JustJulie

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On Monday, July 13th, 2015, Alabama Governor Robert Bentley announced that the state legislature would be heading back into special session to hash out the details of the state’s budget. One of the proposals to be discussed will be a revived version of an earlier e-cigarette tax bill.

Please take action NOW by sending a message to your lawmakers urging them to oppose the Governor’s vapor tax.

The special session will reconvene on Monday, August 3rd, 2015. It is vital that Alabama vapers and harm reduction advocates take this opportunity NOW to reach out to lawmakers urging them to oppose ANY new tax on vapor products.

Although this new tax bill has not been published and is still under review by the Legislative Fiscal Office, the Breathe Easier Alliance of Alabama has stated that this bill is likely to impose a $0.25/milliliter tax on e-cigarettes and e-liquid containing nicotine. This would add $7.50 to a 30 ml bottle of e-liquid.

Please see the full Call to Action for more details: CASAA: Alabama Call to Action! Oppose new taxes on e-cigarettes and vapor products!

Direct link to send an email: Send a Message
 
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crxess

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What I see is several hundred dollars generated off a small business per week and possibly several thousand from a single large business.
Times how many business?

One thing you can always count on is if people enjoy it - Tax it.

By the way what ever happened to double taxation?
Product tax
Retail tax on product purchase.
Consumer is paying Both no matter what the Gooberment says.

Heck - what happened to taxation without representation?
 

Bill Godshall

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Bill Godshall

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Found two tobacco tax bills (HB 9, HB 10) now being considered by the House Ways and Means General Cmte, but both are still listed (on the AL legislative website) as "Pending Committee Action". Perhaps the website hasn't been updated yet.
http://alisondb.legislature.state.a...eans General Fund&SELECTEDDAY={All}&BODY=1755

HB 9 would increase the cigarette tax (from $42.5 to $67.5/pack), would impose a $.25/ml tax on nicotine vapor liquid (i.e. $7.50 tax on a 30ml bottle), and would tax far more hazardous smoking tobacco and little cigars at far lower rates than e-liquid.
http://alisondb.legislature.state.al.us/alison/searchableinstruments/2015fs/bills/HB9.htm

HB 10 would just increase the cigarette tax (from $42.5 to $67.5/pack)
http://alisondb.legislature.state.al.us/alison/searchableinstruments/2015fs/bills/HB10.htm

The posting at
Win for Alabama vapers! | E-Cigarette Forum
says HB 9 was withdrawn from Committee consideration, which if true, would indicate that HB 10 was rejected 8-7 by the Cmte yesterday (or that a third bill to also increase cig tax by $.25/pack was rejected.
 
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Bill Godshall

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According to the article at
Tobacco tax goes down in flames in Alabama Legislature - Yellowhammer News
HB 10 was rejected by the 8-7 vote by the House Ways and Means Cmte on Tuesday, which means that the AL legislature's website (claiming that HB 10 is still pending before the Cmte) hasn't been updated for the past two days.

Breathe Easier Alliance of Alabama says HB 9 (to tax nicotine vapor liquid at $.25/ml) has been withdrawn for consideration during the special session.


But it may be premature to declare victory, as anything can happen during special legislative sessions to enact a state budget.
Until the AL special budget session is over, I suggest remaining vigilant .

It would also help to generate a news story about the purported defeat of HB 9, as doing so would make it more difficult for the AL legislature to revive HB 9 or introduce anther vapor tax bill.

Also, does anyone know if the AL Senate considering a vapor tax bill?
 

nicnik

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"Leadership and Members of the BEAA and their customers should be very proud of these efforts. Those that traveled to Montgomery today should be thanked as should those organizations from other states that provided support."

Yes, thank you, all of you, whoever you are!
 

bigdancehawk

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Well, from this side of the pond I'll have to say 'no comment' there ;)
A recent portrait of the Governor of Alabama:

220px-Allan_Ramsay_-_King_George_III_in_coronation_robes_-_Google_Art_Project.jpg
 
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nicnik

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AL House Speaker Mike Hubbard says session collapsed after cigarette tax failed

House Speaker Mike Hubbard says session collapsed after cigarette tax failed | AL.com

From the article:
Hubbard said the cigarette tax was part of a three-legged stool that would have provided what he said was an equitable solution.

"You had education contributing, you had business contributing and you had a consumer tax contributing that was not broad-based," he said.
He says "equitable", but I say "not so" if "not broad-based".
 
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