[EDIT] CASAA have just released a call to action: CASAA: PA - Take action to oppose a 40 percent wholesale tax on vapor products.
**Pennsylvania Update**
Article 12-A of HB 1198 -- the revenue portion of Pennsylvania's 2017 budget -- is a death warrant. The tax imposed is so high, so sudden, and so poorly considered that few vapor retailers are likely to survive. There is no loophole or bright side for consumers either. In fact, the state has managed to criminalize possession of vapor products for which the tax has not been paid.
This is, without a doubt, one of, if not the, worst pieces of vapor tax legislation we have seen. Pennsylvania will not collect the estimated amount of revenue expected from this tax and will harm hundreds of thousands of PA residents in the process.
[/EDIT]
This is desperately sad. The State of Pennsylvania has just passed a bill which places a 40% tax on the wholesale price of vaping products sold in the state.
Significantly, this includes a "floor tax" meaning that the day after the bill is enacted, each vape store must pay the state a sum equal to 40% of the value of all inventory currently held by that store.
Put simply, most vape stores will not be able to pay this, and will shut up shop.
It's hard to imagine why Pennsylvania would do this. The tax clearly won't bring any significant revenues if stores close and vapers buy their product out of state via online and interstate purchasing. It looks to me like a move to purposely shut the stores down.
It's also yet another wake up call for vapers everywhere. If you're not a member of CASAA, please join so you can get a heads up on any action concerning your state. In a matter of weeks we've witnessed the closing down of the vape industry in two US States. It's doubtful they'll be the last.
EDIT: Chris Hughes (a great guy) from Fat Cat Vapor shop wrote on Facebook:
**Pennsylvania Update**
Article 12-A of HB 1198 -- the revenue portion of Pennsylvania's 2017 budget -- is a death warrant. The tax imposed is so high, so sudden, and so poorly considered that few vapor retailers are likely to survive. There is no loophole or bright side for consumers either. In fact, the state has managed to criminalize possession of vapor products for which the tax has not been paid.
This is, without a doubt, one of, if not the, worst pieces of vapor tax legislation we have seen. Pennsylvania will not collect the estimated amount of revenue expected from this tax and will harm hundreds of thousands of PA residents in the process.
[/EDIT]
This is desperately sad. The State of Pennsylvania has just passed a bill which places a 40% tax on the wholesale price of vaping products sold in the state.
Significantly, this includes a "floor tax" meaning that the day after the bill is enacted, each vape store must pay the state a sum equal to 40% of the value of all inventory currently held by that store.
Put simply, most vape stores will not be able to pay this, and will shut up shop.
It's hard to imagine why Pennsylvania would do this. The tax clearly won't bring any significant revenues if stores close and vapers buy their product out of state via online and interstate purchasing. It looks to me like a move to purposely shut the stores down.
It's also yet another wake up call for vapers everywhere. If you're not a member of CASAA, please join so you can get a heads up on any action concerning your state. In a matter of weeks we've witnessed the closing down of the vape industry in two US States. It's doubtful they'll be the last.
EDIT: Chris Hughes (a great guy) from Fat Cat Vapor shop wrote on Facebook:
The Pennsylvania State Republican Party just a few minutes ago voted to wipe out every vapor business in the state of PA. The mechanism is a 40% wholesale cost tax that includes a "floor tax" that requires all PA vape shops to write a check to the state for 40% of the wholesale value of their entire inventory on the day the tax takes effect. Nobody can do that.
The Republican leadership of the House and Senate just committed a fraud on the citizens of Pennsylvania, by claiming a tax that they knew would close 100% of these businesses would magically generate $13.3 million in revenue.
If you live in PA, and vape, and happen to be registered Republican, I strongly encourage you to immediately change your registration to Democrat, and call your Republican officials in Harrisburg.
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