Just an Idea.

[MoonRose]

Per Bill Godshall: But I think the best method of taxing e-cigarettes and e-liquid that contain nicotine would be as a percentage of wholesale price (even though that is not clearly defined or understood term in the fledgling e-cigarette industry). I suggest that a 5% state tax on e-cigarettes would be reasonable, as would a 5% federal tax (if/when e-cigarettes are legally defined as tobacco products).

What if we as a group (vapors and sellers) were to present this to government officials. That we are voluntarily willing to pay a 5% state tax and a 5% federal tax on our e-cigs, pre-mixed liquids and nicotine solutions used by those of us who mix our own liquids. This would show to government officials that we are not trying to cheat the government out of any and all taxes associated with our use of e-cigs as a smoking alternative to tobacco cigarettes. That we are willing to pay fair taxes for a Reduced Harm product. As the saying goes, you'll attract more flies with honey than with vinegar. So lets put out the so called honey to the government in the way of offering up fair taxes for a product that we believe is much healthier for us than tobacco cigarettes.

 

[DemonCowboy]

there's nothing fair about the current tax system or even just. plus if u offer 5% they'll turn it to 25% or 50% in the blink of an eye - mark my words.

 

[KDK]

Yes, they will in all likelyhood, but at least we would look like we were being reasonable and trying to work with them. That is better than trying to get away from paying anything. Personally, I don't mind paying a reasonable amount of tax. just want to be able to use my e-cig and LIVE!

 

[Janetda]

I see this as a very mucky area. I don't think most e-cig users would mind paying a small tax such as what you're discussing. But no matter what the actual tax, I can see a real problem with state tax. What happens when I'm in CA and I order from PA? PA gets my tax money and CA says it's left to pay my medical costs should I get sick. Are we then looking at expanding the PACT act so that e-cig supplies can't be mailed?

Also, I think you're probably looking at something much higher than 5%. Anti-smoking advocates such as Bill Godshall, regularly call for higher & higher taxes in the belief that it will reduce the number of current smokers and discourage teens from starting. While e-cigs are thought of by some as harm reduction products, they still deliver nicotine which to many advocates is the real devil. Because of that, the tobacco harm reduction model is not the norm in most anti-smoking circles. I cannot imagine that anti-smoking advocates wouldn't call for similar tax rates to that of cigarettes. And I certainly don't see many actual policy makers (who are scrambling for extra $$) that believe in the THR model. IMO, policy makers will jump at the chance for the added income.

We're still at the very beginning - the wild west times, if you will. There will be a lot changes down the road and taxes will certainly be one.

BTW, how many vendors are actually collecting and remitting regular state sales tax when appropriate? That might be a good place to start.

 

[rothenbj]

Janet, unless it is an in state transaction, there is no requirement to collect sales tax.

As to excise taxes, I wouldn't volunteer anything, the give an inch, take a yard philosophy could and would take effect. As Janet stated, we are in the wild west territory right now and whatever we'd do wouldn't appeal to anyone at this point.

My personal feeling is that the tobacco industry and users have been paying way more than their fair share for the problems in this county. If all aspects of smoking were looked at realistically, health care and social security, and if smoking does cut the number of years off the average life that they claim, the government is getting a discount off smokers.

Smoking is no longer the fastest growing health issue either, obesity is. When they start sin taxing the things like fast food, sodas, sugar products, etc., then there will be some balance. Of course, smokers have long been sheep and just kept their mouths semi-shut (other than grumbling). Taxing the obesity factors would hit a lot more people that aren't used to paying for their addictions.

One final point. There is no way that electronic cigarettes should be taxed anything other than sales tax. Do that place sin taxes on pipes?