Last week (April 12) companion bills in the Minnesota House and Senate which support Governor Dayton’s budget proposal were introduced. Article 5 of both of these bills contains provisions that would change the way vapor products are taxed. Effectively, they would apply a 95% wholesale tax on bottles of e-liquid. Currently, the tax is only applied to the nicotine contained in e-liquid, which makes the vapor tax in Minnesota not as bad as it could be.
This tax change is as bad as it could be.
A 95% wholesale tax on e-liquid would make Minnesota’s vapor tax the highest in the country and would make switching to vapor products undesirable for many of the state’s smokers. Moreover, current vapers would be pressured to return to smoking as it may be a cheaper option.
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Considering that only a 40% wholesale tax shut down more than a third of vapor businesses in Pennsylvania, Minnesota lawmakers must reject this proposal.
House and Senate Tax Committees are meeting this week to consider these bills.
House Tax Committee: Tuesday, April 17th
10:15 AM
200 State Office Building
Senate Tax Committee: Thursday, April 19th
8:30 AM
Room 15 Capitol
Please take a moment today and contact members of the tax committees urging them to oppose changing the tax on vapor products in Minnesota!
