California Prop 56 - Hidden Vape Tax

[Lessifer]

I read that its only the tax going up , meaning if the tax was $1 now it will be $1.07, not sure if its correct

I'm not quite sure what you mean. The state excise tax for cigarettes is going up from $0.87 per pack to $2.87 per pack. Other tobacco products, including e-liquid and devices containing e-liquid, are now to be taxed at an equivalent rate. The state Board of Equalization will be in charge of determining how to apply this tax to other tobacco products, as it was not detailed in the proposition.

 

[LarryPer]

I'm not quite sure what you mean. The state excise tax for cigarettes is going up from $0.87 per pack to $2.87 per pack. Other tobacco products, including e-liquid and devices containing e-liquid, are now to be taxed at an equivalent rate. The state Board of Equalization will be in charge of determining how to apply this tax to other tobacco products, as it was not detailed in the proposition.

This was posted on Reddit
'm not familiar with the tax and didn't read any articles, but the title said a 70% increase not a 70% tax.

For example, a 70% increase to a 5% tax means that that tax would now be 8.5%. A 70% increase to a 10% tax would be 17% tax, etc.

Like I said I don't know a damn thing about what's going on here (I'm in Canada), just wanted to point that out.

 

[Lessifer]

This was posted on Reddit
'm not familiar with the tax and didn't read any articles, but the title said a 70% increase not a 70% tax.

For example, a 70% increase to a 5% tax means that that tax would now be 8.5%. A 70% increase to a 10% tax would be 17% tax, etc.

Like I said I don't know a damn thing about what's going on here (I'm in Canada), just wanted to point that out.

Yeah, no, the proposition itself doesn't mention any percentages. Some have speculated that's how the BOE will decide what that tax on eliquid is to be.

The proposition itself calls for a flat $2 increase on the cigarette tax, raising it from $0.87 to $2.87, and an "equivalent" tax to be applied to ecigs.

 

[zoiDman]

This was posted on Reddit
'm not familiar with the tax and didn't read any articles, but the title said a 70% increase not a 70% tax.

For example, a 70% increase to a 5% tax means that that tax would now be 8.5%. A 70% increase to a 10% tax would be 17% tax, etc.

Like I said I don't know a damn thing about what's going on here (I'm in Canada), just wanted to point that out.

Not sure where that person is getting that 70% Figure from.

Ballot summary

The long-form ballot summary was as follows:[3]

“

• Increases cigarette tax by $2.00 per pack, with equivalent increase on other tobacco products and electronic cigarettes containing nicotine.
• Allocates revenues primarily to increase funding for existing healthcare programs; also for tobacco use prevention/control programs, tobacco-related disease research and law enforcement, University of California physician training, dental disease prevention programs, and administration. Excludes these revenues from Proposition 98 funding requirements.
• If tax causes decreased tobacco consumption, transfers tax revenues to offset decreases to existing tobacco-funded programs and sales tax revenues.
• Requires biennial audit.[5]

California Proposition 56, Tobacco Tax Increase (2016) - Ballotpedia

 

[zoiDman]

BTW - Some have Challenged that Prop 56's section about "Equivalent" Taxation is Not Legal.

Because in California, you Can't apply a Voter Approved Tax to a something when Voter's have not been told Exactly what the Tax Amount is.

I would Hope that the Equivalent Tax portion would be Struck Down in the Courts. But being a Long Term Resident of CA, I would say that the Chances of that happening are about the Same as the chances of CA Legislators actually doing something about the Salton Sea fiasco.

 

[Train2]

Right, $2 a pack. Might be a while before they figure out how to apply that to e-liquid, but here's a guess: it won't be good.
I'm thinking I might pick up another bit of nic for the freezer, before they slap a $500/liter tax on it.

 

[zoiDman]

Right, $2 a pack. Might be a while before they figure out how to apply that to e-liquid, but here's a guess: it won't be good.
I'm thinking I might pick up another bit of nic for the freezer, before they slap a $500/liter tax on it.

Yeah... Remember Way Back in the day when e-Cigarette retailers said that a .8ml Pre-Filled Cart/Carto was equivalent to 1 Pack of Cigarettes?

That might come back to Haunt Us. Big Time.

 

[Haktuspit]

My ballot is on my table in California. Left for this Lyme cure trip and didn't care because there's more important things in the world. Only thing I actually cared about was not voting on Prop 56... really disappointed that my non-vote ruined everything, sorry guys.

About to turn this plane around and go back to Cali. And here I am sitting next to 30 years worth in RI that can be shipped back whenever I want. Almost like I saw this coming...

 

[Lessifer]

I'm not going to whine about what could have been done differently. We knew this was an uphill battle. It didn't happen.

Now we get to wait and see how bad it will actually be.

 

[zoiDman]

I'm not going to whine about what could have been done differently. We knew this was an uphill battle. It didn't happen.

Now we get to wait and see how bad it will actually be.

Neither am I. Nor am I going to Whine about what is going on at the Federal Level.

Because with most times in Life, you Get Out what you Put In. And if Not much is Put In, how can someone Whine when things Didn't go the way They wanted them to go?

 

[motordude]

I'm not going to whine about what could have been done differently. We knew this was an uphill battle. It didn't happen.

Now we get to wait and see how bad it will actually be.

Good for you!
Complaining and whining only makes u miserable to those close to u.

 

[oplholik]

Whatever the tax is, I can't really think of anything I need to buy for several more years, except for flavors.

 

[zoiDman]

Whatever the tax is, I can't really think of anything I need to buy for several more years, except for flavors.

It's Shame we Need to be like that. And I Feel Sorry for the Next Generation of would be Vaper's. But I also have Lifetime supply of Everything I need.

That is... Unless I live to be 140 Years Old. If so, I will have to conserve Slightly the Last 10 Years or so.

 

[Lessifer]

I'm not set for life, but I've got at least a few years worth. My thoughts on this have never really been about me though.

 

[DC2]

Whatever the tax is, I can't really think of anything I need to buy for several more years, except for flavors.

Since I went zero nicotine around 10 months ago I only buy zero nicotine liquids.
Should be fun and interesting to see what happens on my next few orders.

Do I care?
Nope. Not anymore. I'm tired of caring.

I did my part, and I can afford the consequences of those who did not.
The end.

 

[Haktuspit]

So, there's still Nevada right? My brother and lots of friends live on that side of the line, 1/2 of Tahoe is Nevada 1/2 California. Just ship it to one of them.

I would have done more but yeah... disease blocking processing and verbal was kinda getting in the way for 9 years. Bout to get real loud when I get back though!

 

[zoiDman]

"In California, tobacco tax revenue dropped by 44 percent between 1989 and last year, from $1.6 billion to roughly $830 million. The state has the nation's second-lowest smoking rate, behind Utah.

State officials estimate Proposition 56 will raise more than $1 billion in the first year for California, with much of the money earmarked for health care for the poor.


Public health experts, like Warner, favor a staggered system that applies a heavy tax on tobacco cigarettes, a lighter tax on e-cigarettes and keeping no tax on nicotine replacement therapies that have been determined to be relatively risk-free. That would deter young people from vaping the liquids that come in candy flavors and provide a financial incentive for smokers to switch, they say."

Some fear California's tax on e-cigarettes may deter smokers

It's kinda Funny how CA Legislators can ask the Voters to Approved a Statewide Tax on e-Cigarettes and e-Liquids without Disclosing what the Tax Amount will be?

 

[Mice Elf]

keeping no tax on nicotine replacement therapies that have been determined to be relatively risk-free.

"keeping no tax on nicotine replacement therapies that have been determined to be produced and sold by large donors".
FTFY

 

[i_L1fe]

These upcoming taxes are very unfortunate for public health. That is why the peeps familiar with vaping need to help peeps to get off the tobacco. Both in education on safe use of vapor products but also with the budget. There are many ways to help new vapers budget.

Spoiler: Prop56

$18 500ML rather than $500 500ML

 

[Lessifer]

I haven't heard anything new about this, but it's coming up.

I'm not quite sure if the bit below means that if e-cigs were taxed today, it would be at 27.3% of wholesale, and in July that would jump up to ~3x that amount, when the cig tax goes from $.87 to $2.87? If so, that's a 90% wholesale tax.

Tax and Fee Guide for Cigarettes and Tobacco Products

• Distributions of all products containing any tobacco, nicotine, e-cigarettes (i.e. nicotine delivery devices) sold in combination with nicotine or items classified as little cigars will be subject to the tobacco products tax, which is currently 27.30 percent of the wholesale cost. Please note, the tax rate on tobacco products is determined annually by the BOE and is equivalent to the tax on cigarettes. The rate is determined at the April Board meeting and is in effect the next fiscal year (beginning July 1).