California Prop 56 - Hidden Vape Tax

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zoiDman

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ETA: I would send Breazy and e-Mail and ask them Why are they charging you a CA Tax when they are an OOS Retailer?

If you Do Contact them, you might also ask why they are Taxing the Full Retail Price? When the Tax says that the Tax Basis is on the Wholesale Price of the product.
 

Ca Ike

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The problem with this tax is the profiteering that is already starting to happen. When you buy direct from a juice maker they are retailing it to you IF they are charging more than they would to a shop. If you are paying the same as a shop would then you are paying wholesale and they have to charge the tax.

However ever, if they give shop/distributors a lower price then the tax has to be on the price they wholesale to shops for and not the price they charge you. They can not charge the tax on the final retail price and if they do they are violating the law.
 

NotSoMini

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Thanks everyone for your great input.

Regardless of whether I put a 3mg or 0mg bottle in the cart it calculates tax at 29%. Should they be charging tax on zero nic ejuice? If not, then I will contact them. I will ask about tax being calculated on the wholesale price and not the retail price as well as whether they had inventory pre-April 1, 2017. Before entering the bottle to my cart it showed Shipped & Sold by Breazy similar to what Amazon does.

Shop Stores Nearby is somewhat of a joke. I entered my zip code and the first B&M to come up is my neighborhood B&M. I have been going there off and on for almost four years and they carry SoCal made ejuices. Only recently they added one juice made in NV. They are a small privately owned independent B&M. There was another store that is both online retail and B&M wholesaler. I was just there a month or so ago and they sell hardware. The wholesaler that is housed in the same location sells everything including ejuice but not the brand I was going to buy with Breazy. I know this because when I was there I asked them. I think Breazy might be confused like me ;)

Subtotal $ 24.99
Discount FAVS - $7.49
Shipping -
Taxes - $5.04
Total USD $ 22.54
 

zoiDman

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Thanks everyone for your great input.

Regardless of whether I put a 3mg or 0mg bottle in the cart it calculates tax at 29%. Should they be charging tax on zero nic ejuice? If not, then I will contact them. I will ask about tax being calculated on the wholesale price and not the retail price as well as whether they had inventory pre-April 1, 2017. Before entering the bottle to my cart it showed Shipped & Sold by Breazy similar to what Amazon does.

Shop Stores Nearby is somewhat of a joke. I entered my zip code and the first B&M to come up is my neighborhood B&M. I have been going there off and on for almost four years and they carry SoCal made ejuices. Only recently they added one juice made in NV. They are a small privately owned independent B&M. There was another store that is both online retail and B&M wholesaler. I was just there a month or so ago and they sell hardware. The wholesaler that is housed in the same location sells everything including ejuice but not the brand I was going to buy with Breazy. I know this because when I was there I asked them. I think Breazy might be confused like me ;)

Subtotal $ 24.99
Discount FAVS - $7.49
Shipping -
Taxes - $5.04
Total USD $ 22.54

The 0mg Shouldn't be Taxed period.

I would Definitely contact them and ask them What Is Going On?
 

Katya

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Regardless of whether I put a 3mg or 0mg bottle in the cart it calculates tax at 29%. Should they be charging tax on zero nic ejuice? If not, then I will contact them. I will ask about tax being calculated on the wholesale price and not the retail price as well as whether they had inventory pre-April 1, 2017.

Outrageous. Fight back. Ask questions. Demand answers.

They shouldn't be taxing 0 mg juices. And the tax should be calculated on the wholesale price.

Good luck!
 

sofarsogood

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One of the things that surprises me is how fiercely so many vapers are resisting putting some nic in the freezer. And lately it's starting to appear some people have kept nic at room temperature for years without problems. It isn't necessary to becomena vape chef. Just buy the 0 mg liquids and add the nic. That reduces the cost 28% and if you only make it for personal use I'm sure it's legal. Then take it one step further and dilute the liquid with unflavored mix and you've saved yourself another 50%. What am I missing here. I've been mixing with 10 mg nic and 1% flavoring since August '15. My cost of ingredients for a year supply is $20. (I like to brag about the cost, gives me the giggles.)
 

NotSoMini

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One of the things that surprises me is how fiercely so many vapers are resisting putting some nic in the freezer. And lately it's starting to appear some people have kept nic at room temperature for years without problems. It isn't necessary to becomena vape chef. Just buy the 0 mg liquids and add the nic. That reduces the cost 28% and if you only make it for personal use I'm sure it's legal. Then take it one step further and dilute the liquid with unflavored mix and you've saved yourself another 50%. What am I missing here. I've been mixing with 10 mg nic and 1% flavoring since August '15. My cost of ingredients for a year supply is $20. (I like to brag about the cost, gives me the giggles.)

Tax was calculated at 29% regardless of whether I tried purchasing zero or 3mg nic.
 

Lessifer

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One of the things that surprises me is how fiercely so many vapers are resisting putting some nic in the freezer. And lately it's starting to appear some people have kept nic at room temperature for years without problems. It isn't necessary to becomena vape chef. Just buy the 0 mg liquids and add the nic. That reduces the cost 28% and if you only make it for personal use I'm sure it's legal. Then take it one step further and dilute the liquid with unflavored mix and you've saved yourself another 50%. What am I missing here. I've been mixing with 10 mg nic and 1% flavoring since August '15. My cost of ingredients for a year supply is $20. (I like to brag about the cost, gives me the giggles.)
Some people don't want to bother with DIY, which is actually good for the industry as a whole.
 

sofarsogood

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Some people don't want to bother with DIY, which is actually good for the industry as a whole.
I'm grateful that the propserous juice companies are challenging the government in court but I don't see much of a pre mix business in the long run regardless of the government. I believe if you're going to be a life long vaper you'll be mixing and rebuilding sooner or later. A fresh wick every couple of days is a beautiful thing and liquid with low flavoring that doesn't gunk up coils is also rather nice.
 

Lessifer

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I'm grateful that the propserous juice companies are challenging the government in court but I don't see much of a pre mix business in the long run regardless of the government. I believe if you're going to be a life long vaper you'll be mixing and rebuilding sooner or later. A fresh wick every couple of days is a beautiful thing and liquid with low flavoring that doesn't gunk up coils is also rather nice.
I think that depends a lot on what the regulation/tax environment looks like. You would think that there would be no smokers in NY who don't roll their own, but people like convenience.
 

DC2

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I think that depends a lot on what the regulation/tax environment looks like. You would think that there would be no smokers in NY who don't roll their own, but people like convenience.
People pay for convenience all the time.
That's why there are car washes and dog groomers.
:)
 

Verb

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I am confused about the new tax and hope someone can set me straight. I went to purchase some juice (3mg) off the Breazy.com website located on the east coast this morning. As far as I know they do not have any B&Ms in CA however when I went to make a purchase they calculated sales tax at around 28%. Needless to say I did not buy. It is a flavor that I have been purchasing since last year from various vendors.

If they distribute wholesale to vape shops in CA, they would have to be a registared distributor with the state. The state could have a requirement of the license that they would collect the tax for all direct to customer sales as well. It happen with the tax in PA.
 

Katya

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I have not received a response from them. Will wait till tomorrow and send a follow up if need be.

I'm not surprised. I suspect that many vendors don't have a clue and probably don't want to hire--or can't afford to hire--a lawyer. I can't say I blame them. They are just trying to survive and not end up in jail... So many are just throwing their hands up in despair and walking away... :(
 
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