Pennsylvania: Gov. Wolf proposing taxing e-cigs

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Paramaniac413

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I saw this today - it makes me worried. In the article, it says that Gov. Wolf is proposing tax increases in his budget plans as well as some new taxes. This is from the York Daily Record. Article dated: 3/3/2015

[h=1]A look at Gov. Tom Wolf's proposal to raise sales, income taxes and lower school property taxes[/h]
[h=5]"Other taxes[/h]tobacco >> Taxes on cigarettes would be increased by $1 per pack effective Oct. 1, 2015. He also wants to impose a tax on all other tobacco products, including e-cigarettes, effective Oct. 1, 2015."
 
The budget document states in section C1-6 "a 40% tax on the wholesale price of other tobacco products is proposed,
including smokeless tobacco, large cigars, loose tobacco, and e-cigarettes."

That, and a reiteration of the above are the only references to e-cigarettes. Now to parse exactly what that means. If it applies to juice, it would certainly drive the price up, and even more so if I'm buying anew mod. This is potentially very bad for the guys who run the B & M that I go to, they don't deserve this kind of punishment.
 

Bill Godshall

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Yesterday, PA Governor Tom Wolf proposed many significant tax changes, including increasing the cigarette tax $1/pack (from $1.60 to $2.60) and imposing a similar 40% wholesale tax on e-cigarettes, smokeless tobacco, cigarillos and large cigars, and smoking tobacco.
http://www.portal.state.pa.us/porta...urrent_and_proposed_commonwealth_budgets/4566

PA vVaping and vapor product advocates need to contact (visit, write, call) their State Rep and Senator
PA General Assembly
to express opposition to taxation of vapor products.

The PA Constitution requires the General Assembly to approve a budget by the end of June, so we must mount a four month campaign to ensure that vapor products are not included in the final budget. While the House and Senate leadership and the Finance and Appropriations Committees in both the PA House and Senate have typically overseen most budget processes in Harrisburg, other committees are likely to be active this year (due to so many different tax proposals).

Please note that PA is the only state that does not tax smokeless or smoking tobacco, and is one of only two states (FL) that doesn't tax cigarillos and large cigars pipe tobacco. Also note that efforts to tax OTP by PA Gov. Rendell and PA Democrat legislators during the past decade were unsuccessful (as they were blocked by Republican House and Senate leaders, who now have even larger majorities in both legislative bodies).

Yesterday afternoon, AVA president Greg Conley sent out the press release (below) to PA news media, and Smokefree Pennsylvania sent a press release with my same comments to our PA news contacts.

This morning, Kevin Gavin from WESA (the PBS affiliate in Pittsburgh, which is primarily listened to by liberal Democrats) interviewed me for 5 minutes on Gov. Wolf's tobacco and vapor product tax proposal.
90.5 WESA | Pittsburgh

Bill Godshall
Executive Director
Smokefree Pennsylvania
1926 Monongahela Avenue
Pittsburgh, PA 15218
412-351-5880
BillGodshall@verizon.net



Contacts: Gregory Conley (AVA) / Bill Godshall (Smokefree Pennsylvania)
Tel: 609-947-8059 / 412-351-5880
Email: gconley@vaping.info / billgodshall@verizon.net

FOR IMMEDIATE RELEASE
3/3/2015 at 4:30 pm EST

Pennsylvania Legislature Should Reject Gov. Wolf's E-Cig Tax

Anti-smoking and small business advocates warn that the new tax will do more harm than good
HARRISBURG, P.A. - Today, the American Vaping Association, a leading advocate for the benefits of vapor products such as electronic cigarettes, joined with longtime Pennsylvania anti-smoking advocate Bill Godshall to react to Governor Tom Wolf's proposal to tax vapor products at 40% of wholesale price. Gov. Wolf's budget would also increase Pennsylvania's cigarette tax by $1 per pack and tax other tobacco products (OTP) like smokeless tobacco and cigars at the same rate as vapor products.

Gregory Conley, President of the American Vaping Association, issued the following statement:

"In a state with over 2 million smokers, it is unconscionable to target these smoke-free products with new taxes. Vapor products have been repeatedly proven to help smokers kick the habit. Discouraging adult smokers from switching to vaping will only result in more disease and death.

"Pennsylvania's 120+ vapor retail specialty stores will also suffer under this bill. Many consumers will avoid the tax by shopping over state lines or through the Internet.

"For the good of public health and small businesses in Pennsylvania, the Legislature should reject Gov. Wolf's tax hike on vapor products."

Bill Godshall, longtime anti-smoking activist and the Executive Director of Smokefree Pennsylvania, issued the following statement:

"Cigarettes cause 99% of tobacco attributable disease, disability, healthcare costs and death. In sharp contrast, e-cigs and smokeless tobacco have helped several million smokers quit, pose negligible risks, and save the Commonwealth money."

"The PA General Assembly should increase the cigarette tax, but should reject taxing low risk OTP and lifesaving vapor products. Besides, raising the cigarette tax by $1 per pack will generate five times more tax revenue than Governor Wolf's counterproductive OTP and vapor product tax proposal."

For more information on e-cigarettes and their efficacy for helping smokers quit, please see these studies. (1, 2, 3, 4).
####

You can learn more about AVA and vaping by visiting the AVA website. You can also find us on Facebook and Twitter.

About the American Vaping Association:
The American Vaping Association is a nonprofit organization that advocates for small- and medium-sized businesses in the rapidly growing vaping and electronic cigarette industry. We are dedicated to educating the public and government officials about financial and public health benefits offered by vapor products, which are battery-powered devices that heat a liquid nicotine or nicotine-free solution and create an inhalable vapor.

About Smokefree Pennsylvania:
Since 1990, Smokefree Pennsylvania has advocated local, state and federal policies to ban smoking in workplaces, stop cigarette marketing to youth, increase cigarette tax rates, hold cigarette companies accountable in civil court, and help smokers quit. During the past decade, Smokefree Pennsylvania has been educating the public that cigarettes are 100 times more hazardous than all smokefree tobacco/nicotine alternatives, including smokeless tobacco, nicotine gums, lozenges, patches, inhalers, and e-cigarettes.
 

Paramaniac413

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The budget document states in section C1-6 "a 40% tax on the wholesale price of other tobacco products is proposed,
including smokeless tobacco, large cigars, loose tobacco, and e-cigarettes."

That, and a reiteration of the above are the only references to e-cigarettes. Now to parse exactly what that means. If it applies to juice, it would certainly drive the price up, and even more so if I'm buying anew mod. This is potentially very bad for the guys who run the B & M that I go to, they don't deserve this kind of punishment.

It'd be bad for my favorite B&M as well. I guess I will be writing a "few" letters this week...
 

Bill Godshall

Executive Director<br/> Smokefree Pennsylvania
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Per comments above, please note that the Governor Wolf's budget proposal simply presented his general policy concept about taxing e-cigarettes).

But any changes to PA's Tax Code must be drafted, proposed, debated and subsequently enacted in the PA General Assembly (i.e. the House and Senate, via the legislative process).

It may be several weeks before actual legislation is introduced in the PA House and/or PA Senate to implement Governor Wolf's many different tax proposals.

Gov. Wolf will plan with his Democrat allies in the House and Senate to either introduce (or try to find foolish Republicans to introduce) one large omnibus bill or multiple bills (to implement the many different tax changes).

I suspect that language from the e-cig tax proposed in Philadelphia last year (which hasn't received any committee action by Council, and which may or may not still be active legislation) will be used for any e-cig legislative proposal in the PA House or Senate.

Please note that most Democrats in the PA House and Senate have/are coalescing around and voicing support for Gov. Wolf's many different tax proposals, especially Democrat legislators from Philly (and to a lesser degree Pittsburgh) who have been campaigning to tax OTP for the past decade, and who successfully lobbied the PA legislature and Gov. Corbette to allow Philly to impose a $2/pack tax on cigarettes last year (to bail out Philly's failing and broke school system).

I've heard (but am trying to confirm) that the $2/pack Philly cigarette tax would be eliminated under Gov. Wolf's proposed statewide $1/pack cigarette tax hike proposal, and that Wolf's state budget would bail out the failing and broke Philly school system.

Its also likely that Gov. Wolf's many different tax change proposals are serving as trial balloons to see the public's response (and the Republican House and Senate leadership's response) before any legislation is actually introduced (with some of Wolf's tax proposals either not included or changed in the actual legislation based upon the public's response.

That is why it is very important for many vapers and vape shop owners in PA to contact their PA State Rep(s) and Senator(s) urging them to oppose Gov. Wolf's e-cig tax proposal.
 

Bill Godshall

Executive Director<br/> Smokefree Pennsylvania
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Bill Godshall

Executive Director<br/> Smokefree Pennsylvania
ECF Veteran
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Here's the portion (and revenue estimates) of Gov. Wolf's cigarette, OTP and vapor product tax proposal in the Gov's budget
(in C-6 of the budget), which is available at http://www.portal.state.pa.us/porta...urrent_and_proposed_commonwealth_budgets/4566

Basically, Gov. Wolf's Revenue Department estimates that his proposed $1/pack cigarette tax hike (to $2.60/pack) would
generate $358 million in FY 2015/16 annual revenue, and that the proposed 40% tax on OTP and vapor products would generate
an additional $84 million in annual revenue (the vast majority of which would be generated by sales of cigars and smokeless tobacco).


Cigarette Tax ......................................................................................... $ 358,400
Effective October 1, 2015, an increase in the Cigarette Tax rate equivalent to $0.05 per cigarette
($1.00 per pack of 20 cigarettes) is proposed.

Other Tobacco Products .............................................................................. $ 84,100
Effective October 1, 2015, a 40% tax on the wholesale price of other tobacco products is proposed,
including smokeless tobacco, large cigars, loose tobacco, and e-cigarettes.
 

Rossum

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Good luck Tom. Most Pennsylvania vapers will NOT pay 40% more; we'll order from out-of-state. A single liter of e-liquid will last a heavy vaper more than 6 months. All you'll succeed in doing is killing off the local businesses that have popped up everywhere helping people to quit smoking; then you won't even get the sales taxes those businesses currently collect for you. My prediction: Taxing vape products at that rate will be a NET LOSS to the state in terms of revenue.
 

Lisa Belle

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Wait until Nicotine itself is re-classified a type III Drug. There are many evile stirrings from various State legislatures, WA, OR and CA that are trying to bulldoze that into action. Then it won't be that easy to resort to DIYing. We need to be organized and ready to act as a political body that can't be ignored. This is the year that will kill us as far as affordable, accessible and available Adult alternatives to smoking. :vapor:

JOIN TOGETHER
casaa.org
vapingmilitia.org

If your in business,
sfata.org (more and more states have local chapters of sfata.org)

Join ECF
 
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mcclintock

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    The bill that was stopped in Virginia also applied to out of state sales coming in. So I guess a vendor in China would have to have Virginia tobacco control board approval to sell in Virginia. Anyone meeting the requirements to sell e-juice would also qualify to sell tobacco. A tax of even 1 cent a gallon, if done through the existing tobacco governing structure, has huge consequences. Whether this unforeseen or exactly what they want, I don't know.

    (Reading the bill, it also didn't seem to apply to DIY at all, as it applied only to ready to use juices??)
     

    JustJulie

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    CASAA has issued a Call to Action for Pennsylvania: CASAA: Pennsylvania Call to Action: Oppose the Governor's unjustifiable 40% wholesale tax on Vapor Products and Smokeless Tobacco.

    Please take action NOW and send a message to your PA Assemblymember.
    Oppose Vapor taxes in PA - Send an Email

    In addition to sending a fully editable, pre-written email, please also make a call to your assemblymember.
    Oppose Vapor taxes in PA - Make a Call


    (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.
     

    JustJulie

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    Update - 07.09.15

    Although the PA State Assembly passed a budget bill in June that did not include a damaging tax on vapor products, the budget was promptly vetoed by Governor Wolf. As a result, the assembly will return to budget negotiations in order to hammer out an acceptable plan. These meetings could begin as soon as next week (week of 7/13).

    In advance of the budget talks, it is vitally important that Pennsylvania vapers and tobacco harm reduction advocates take a moment to express a bit of gratitude to lawmakers for passing the initial bill that did not impose a tax on vapor products.

    Please take a moment now to send a fully editable, pre-written thank you letter to your Pennsylvania lawmakers. Please also include your personal story about how switching to low-risk, smoke-free alternatives like e-cigarettes and snus has changed your life. If you need a little inspiration, please visit our testimonials project. And if you haven’t already submitted your story, please take a moment to add it to our collection. Personal stories are incredibly powerful and help legislators understand why we are so passionate about ensuring that vapor products remain accessible, affordable, and effective.

    (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.
     
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