Kansas Call to Action: Oppose ANY new tax on vapor products!

[JustJulie]

It is likely that tax language regarding electronic cigarettes will be added to a tobacco tax bill in Kansas. As soon as more details emerge, we will update this alert. In the meantime, we are asking Kansas advocates to take action by sending a message to lawmakers urging them to oppose ANY taxes on vapor products.
Please take action NOW and send a message to Kansas lawmakers urging them to oppose ANY taxes on vapor products.

• Oppose a KS Vapor Tax - Send an Email

(Writing Tip #1) If you have a lot to say, please craft your email in a separate word doc and then copy/paste it into the field provided. If you take too long, they system will time out and you will lose your work.
(Writing Tip #2) Although we've provided a prewritten email with compelling talking points, we would strongly encourage you to edit the email because personalized communications to legislators are far more persuasive than form letters. At a minimum, PLEASE INSERT YOUR PERSONAL STORY (just a few sentences) in the text of your email.

Link to Call to Action: CASAA: Kansas Call to Action: Oppose ANY new tax on vapor products!

 

[JustJulie]

(Update - 06.01.15)

Tax language is on the move in the Kansas Senate TONIGHT. We are now receiving intel that this is a $0.20/ml tax on e-liquid that is being inserted into a budget bill. It is likely the bill will be voted on tonight, Monday, June 1st, 2015.

Please, even if you have already sent an email, send another message to your state senator urging them to oppose ANY extra tax on vapor products.

• Oppose a KS Vapor Tax - Send an Email

Please stay on alert as this will likely move on to the house for consideration tomorrow. We will issue updates as this bill moves through the process.

Link to Call to Action: CASAA: Kansas Call to Action: Oppose ANY new tax on vapor products!

 

[Grimwald]

Our taxes have been screwed up for a couple years. For instance, since I own my own business, I pay zero income tax. However, all of my employees do pay income tax. (unless they quit and I pay them as independent contractors) That's why the KS budget is completely broken. Several school districts closed a couple of weeks early simply because they ran out of money. They are saying that state workers will be furloughed soon.

I don't have any insight into how the legislature will solve their budget deficit...it's really a behind closed door process. Brownback says he would veto any rollback of the business owner tax breaks, so they are searching for other income. We are looking at a $400+ million shortfall, not likely to be made up with tobacco/ecig taxes. Raising sales taxes, which are lower than most states, will likely be the first step, but there will be other "hidden" taxes that will only be known after passage.

Update: no agreement on Monday night, so they will try again tomorrow. No mention of e-cig (or tobacco) taxes in the news...but I'm sure it's hidden in there somewhere.

This is a very GOP government -- they kind of choke when raising taxes of any kind -- but the tax on business owners/farmers is the real sticking point.Tobacco taxes, sales taxes, and yes e-liquid taxes will all likely go up, because Brownback will do anything and everything before he admits that the business tax breaks were a total failure.

 

[squee]

No mention of e-cig (or tobacco) taxes in the news...but I'm sure it's hidden in there somewhere.

It was in one of the offered amendments but they split it into 3 sections to vote on. Only 1 part passed and it was not the section that had the e-cig taxes in it.

The same bill is still pending for the calendar in the morning, so we'll see if anyone offers another then

 

[JustJulie]

(Update - 06.02.15)


Last night, a budget bill amendment that would have imposed a $0.20/ml tax on e-liquid was debated on the floor of the senate. Most of the amendment was defeated including the vapor tax. However, as many Kansans are aware, there remains a very large gap in the state’s budget. Although this amendment did not succeed, the budget shortfall remains and lawmakers will be scrambling over the next few days to find untapped or underutilized sources of revenue. It is likely we will see an attempt to tax e-cigarettes again.


The next few days are likely to be chaos in the Kansas legislature which is why it is vital that harm reduction advocates reach out to lawmakers and urge them to oppose any attempt to tax e-cigarettes.

• Oppose a KS Vapor Tax - Send an Email

 

[Bill Godshall]

Don't know what the KS budget deficit is now estimated at, but a $.20/ml tax on e-liquid is not going to generate very much tax revenue.

When trying to balance deficits, legislative leaders tend to prefer raising just one or several taxes that generate a lot of tax revenue (as opposed to creating or raising lots of different taxes that generate little revenue).

If you live in Kansas, please contact your legislator(s) urging them to oppose any e-cig tax, and please contact several other vapers in KS urging them to do the same.

 

[JustJulie]

(Update - 06.08.15)
Last night (Sunday, June 7th, 2015), the Kansas Senate approved a bill that would impose the 20 cent per milliliter tax on e-liquid. Fortunately, the tiered distribution system that was mentioned in previous updates was stripped out of the plan.
The bill now moves to the house and will be voted on around 2:00 PM today.
It is absolutely imperative that everyone in Kansas oppose this tax. Please take action now by sending your representative a message urging them to oppose ANY tax on vapor products in Kansas.

• Oppose Vapor Taxes in Kansas - Send an Email

 

[Grimwald]

Not to worry...looks like they plan to make up $400 million by taxing garage sales...seriously...garage sales. There seems to be proposals to tax rent, health insurance, and utilities. It's getting pretty silly here in Kansas.

 

[Bill Godshall]

Kansas House temporarily adjourns without voting on Senate approved budget bill
Kansas House adjourns amid vote against bill to raise taxes - Times Union

 

[Grimwald]

They passed a bill last night. Mostly decided on raising sales taxes and .50 per pack on cigarettes.The e-cig tax was postponed to next year. Basically they said they would add language to tax e-cigarettes in July 2016...whatever that means. Honestly, I don't think anyone knows what they passed...they just passed something.

 

[squee]

This is what they passed:

New Sec. 12. (a) On and after July 1, 2016, a tax is hereby imposed upon the privilege
of selling or dealing in electronic cigarettes in this state by any person engaged in business as a
distributor thereof, at the rate of $.20 per milliliter of consumable material for electronic
cigarettes and a proportionate tax at the like rate on all fractional parts thereof. For electronic
cigarettes in the possession of retail dealers for which tax has not been paid, tax shall be imposed
under this subsection at the earliest time the retail dealer: (1) Brings or causes to be brought into
this state from without the state electronic cigarettes for sale; (2) makes, manufactures or
fabricates electronic cigarettes in this state for sale in this state; or (3) sells electronic cigarettes
to consumers within this state

 

[Bill Godshall]

Please post the bill number or weblink for the bill.

 

[squee]

The main page for the bill is S Sub for HB2109 | Bills and Resolutions | Kansas State Legislature

And the conference report is at http://www.kslegislature.org/li/b2015_16/measures/documents/ccr_2015_hb2109_s_2447.pdf

 

[Bill Godshall]

$.20 per milliliter of consumable material for electronic
cigarettes

Hmm. Unless the definition of e-cigarettes only pertains to nicotine containing vapor products, this tax might also apply to no-nicotine e-liquid products.

I suspect the cigarette tax hike will go into effect during the next several months, so vape shops in KS should thrive for the next year.

 

[Grimwald]

Here in Kansas the legislature passed a business tax cut a couple of years ago. This means that privately held, LLC, sole proprietorships, S-Corps, do not pay income taxes on income. This includes my small business but also includes our largest privately help company Koch Industries. That's why we are $400 million in the hole. At my and my wife's current usage, I will pay more taxes for e-cig liquid than I will save in income taxes. I don't think the Koch brothers use e-cigs.

 

[squee]

If anyone was wondering what Brownback's position is on this bill, he issued this statement:

Governor Sam Brownback statement on passage of Senate Substitute for HB 2109

Topeka – Governor Sam Brownback today issued the following statement after the Legislature passed Senate Substitute for House Bill 2109:

“I greatly appreciate the hard work of the Legislature in passing the budget and a tax bill that meets our Constitutional obligation to provide sufficient revenue to fund budget appropriations. I congratulate them on coming together in a spirit of cooperation and compromise to do what is right for Kansas.

“This bill keeps the state on a path of economic growth, creating well-paying jobs that benefit all Kansans. It continues our transition from taxes on productivity to consumption-based taxes and provides a mechanism for reducing income tax rates for all our citizens.

“I thank the Legislature for completing the final actions of this legislative session: passing a pro-growth tax policy and a balanced budget.”

 

[squee]

And... it's official. Signed by the governor on June 16th

http://www.kslegislature.org/li/b2015_16/measures/documents/hb2109_enrolled.pdf