You are right Katya. It was a Poor Choice for me to Mention that Health Care Legislation.
It just Pisses Me Off that so many in Government are Unwilling to work together to get anything going in this Country.
California Prop 56 - Hidden Vape Tax
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You are right Katya. It was a Poor Choice for me to Mention that Health Care Legislation.
It just Pisses Me Off that so many in Government are Unwilling to work together to get anything going in this Country.
No floor tax, just a wholesale tax taking effect on Apr. 1. So far the local shops seem to be in denial, none of the three I talked to told me how much or if they will be raising ejuice prices. I think they're all in 'wait and see' mode. If it was my business, I'd know a lot more than the two owners I have talked to.
I doubt the retailers are in denial. Their only gripe would be if any taxes are not consumer payable.
I saw this happen on April 1, 2009 with the 'Help Obama Quit Smoking Tax' on cigarettes and loose rolling tobacco. The law invalidated the tax code section(24?) that differentiated loose rolling tobacco from pipe tobacco. Daughters & Ryan changed the name on their rolling cigarette tobacco to 'pipe' tobacco on April 1, 2009. The other manufacturers followed suit that year. But, there was this very vocal retailer on a rolling tobacco forum I frequented who was in the middle of franchising his small retail rolling tobacco business. He didn't like that the new lightly cased 'pipe' tobacco cost 1/2 his 'rolling' tobacco. He was ready to throw all us consumers to the dogs instead of wising up.Can you Post where you found that things that do Not Contain Nicotine will not be Taxed?
It was/is my Understanding that All "Tobacco Products" will come under the Tax Man's jackboot.
What is a "tobacco product" under California law?
California state law expanded the definition of tobacco products. A tobacco product is (1) any product containing, made, or derived from tobacco or nicotine that is intended for human consumption, (2) any electronic vaping device (whether or not it contains nicotine), or (3) any component, part, or accessory of a tobacco product, whether or not sold separately. For example, e-cigarettes, atomizers, vaping tanks or mods, and "e-liquid" or "e-juice" are tobacco products. But products like nicotine patches that the U.S. Food & Drug Administration has approved as cessation products or for other therapeutic purposes are not included. [Business and Professions Code Section 22950.5 (d)]
https://www.cdph.ca.gov/programs/to...w/What is a tobacco product in CA_5-31-16.pdf
It was/is my Understanding that All "Tobacco Products" will come under the Tax Man's jackboot.
What is a "tobacco product" under California law?
California state law expanded the definition of tobacco products. A tobacco product is (1) any product containing, made, or derived from tobacco or nicotine that is intended for human consumption, (2) any electronic vaping device (whether or not it contains nicotine), or (3) any component, part, or accessory of a tobacco product, whether or not sold separately. For example, e-cigarettes, atomizers, vaping tanks or mods, and "e-liquid" or "e-juice" are tobacco products. But products like nicotine patches that the U.S. Food & Drug Administration has approved as cessation products or for other therapeutic purposes are not included. [Business and Professions Code Section 22950.5 (d)]
https://www.cdph.ca.gov/programs/to...w/What is a tobacco product in CA_5-31-16.pdf
I thought we covered that a few pages ago. Hardware without liquid should not be taxed. Now, liquid without nicotine, I'm not sure about that.
California Prop 56 - Hidden Vape Tax
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A lot of all this Shouldn't be Taxed. Just like something that Doesn't Contain Nicotine which was Derived from Tobacco shouldn't be considered a "Tobacco Product".
But that Doesn't Mean that California hasn't established what a Tobacco Product is. And that they won't try to Tax it.
We Really Need that Nicopure Ruling to be Issued.
New products subject to excise tax Beginning April 1, 2017, distribution of the following products will be subject to the current tobacco products tax rate of 27.30 percent of the wholesale cost of the product:
• Little cigars (a cigarette tax stamp will no longer be required to be affixed to the package);
• Any product made, derived, or containing any amount of tobacco that is intended for human consumption (previously products had to contain at least 50 percent tobacco, be a smoking or chewing tobacco, or snuff to be subject to tax);
• Nicotine that is intended for human consumption (sold with or without a nicotine delivery device); and
• Nicotine delivery devices (including, but not limited to, electronic cigarettes, e-cigars, e-pipes, vape pens and e-hookahs) sold in combination with substances containing nicotine.
Products not subject to excise tax
• Nicotine delivery devices sold independently and not in combination with any liquid or substance containing nicotine;
• Any battery, battery charger, carrying case, or any other accessory used in the operation of a nicotine delivery device if sold separately from a substance containing nicotine; and
• Any product approved by the U. S. Food and Drug Administration as a tobacco cessation product or other therapeutic purpose when that product is marketed and sold for such approved use (for instance, nicotine patches).
What is not discussed is 0-nicotine e-liquid.
• Little cigars (a cigarette tax stamp will no longer be required to be affixed to the package);
• Any product made, derived, or containing any amount of tobacco that is intended for human consumption (previously products had to contain at least 50 percent tobacco, be a smoking or chewing tobacco, or snuff to be subject to tax);
• Nicotine that is intended for human consumption (sold with or without a nicotine delivery device); and
• Nicotine delivery devices (including, but not limited to, electronic cigarettes, e-cigars, e-pipes, vape pens and e-hookahs) sold in combination with substances containing nicotine.
Products not subject to excise tax
• Nicotine delivery devices sold independently and not in combination with any liquid or substance containing nicotine;
• Any battery, battery charger, carrying case, or any other accessory used in the operation of a nicotine delivery device if sold separately from a substance containing nicotine; and
• Any product approved by the U. S. Food and Drug Administration as a tobacco cessation product or other therapeutic purpose when that product is marketed and sold for such approved use (for instance, nicotine patches).
What is not discussed is 0-nicotine e-liquid.
Thanks Les.
The Common Sense would say that 0mg Wouldn't be Taxed. But California is Not known for having an Overabundance of common sense when it came to Taxes and Spending.
So I guess we will have to Wait n' See.
My read would be if you buy a $50 bottle of 100mg nic mail order or otherwise and pay the tax you're good?
My DIY cost of ingredients is 1.1 cents per ml. The cheap plastic bottles I use cost more than the liquid inside. The cost for commercial mixers may be less. Markups are so high they could probably absorb any amount of the tax they choose and not raise retail prices at all.
Yes, that's what seems to have happened with at least some small commercial mixers herein PA. And that's all well and good for as long as small commercial mixers are still around, which won't be for much longer if the FDA regs stand in their current form and are enforced.
Correct, which isn't too bad at the current rate, though I won't voluntarily be paying any tobacco taxes on my vapor products.
When the rate is reevaluated and gets another bump, I believe in June, I expect the rate to be closer to 80%.
Is it believed that mail ordered Nic will be taxed ? How will CA collect that tax ? I have contacted three nicotine suppliers and they have stated they are not aware of having to charge taxes on shipments to CA. It's all so confusing.
That is not like California to give up a dime. Years ago I bought my cigarettes on line and shipped to CA. The supplier got busted and had to give up all their sales records. CA hit me up for the taxes on each and every carton I bought for two years- it was a chunk of cash.
If a Seller has no "Presence" inside of California, it is Not the Responsibility of the Seller to Collect Taxes for the People Republic of Kalifornia.
And it would be up to the Buyer to declare the Tax amount on Line 91 of His/Her CA Tax Return.
Not sure How someone would do this? Seeing that the Tax Basis is on the "Wholesale" price. But just about No One does this. So I guess it is a Moot Issue.
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