PA 40% Tax Increase!!!!!

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vincom

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Thanks everyone, once I calmed down over the sticker shock, I realized I just cant give up what I really love and I love to vape!

From what Ive read, no matter where you buy it you have to send in a use tax on your state income tax if you havent paid the tax on it. If you get caught you could get a 5K fine and or prison time. I dont look good in orange. LOL.

Honestly for PA to be so NASTY did a fellow Vaper pee in one of the legislators Wheaties!?!?! You all should read this link about it, its quit frighting:
UPDATE: Pennsylvania Vapor Tax Is Worse Than We Thought - Vaping360

Thanks a bunch.
Peace out.
would that kind of law/punishment even hope to stand up in court
 

sunnyskyez

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Since nic base can't be vaped as-is and can be used for other things (diy organic pesticide), if it is not purchased from a vape exclusive retailer it is not covered by the tax.

The tax is being applied contrary to PA law. Items must be taxed for what they are, not because of who sells it. I'm thinking more over hardware parts, VG, and loose batteries, than nic. Hopefully, the first lawsuit gets filed soon.[/QUOTe

Thanks but its all confusing and so totally unfair. First they get us addicted to analogs, then they tax the hell out of us.
 

sunnyskyez

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$65 is about what I used to spend to smoke for a week. Typical liquid consumption for me today is 50 ml perr week which I make at home for a cost of 1.2 cents per ml, 60 cents per week. That difference in cost is 2 orders of magnitude. I usually mix a month supply which takes about 20 minutes. A bottle of nic that costs $50 will last me about 4 years. If I was still smoking 4 years of cigarettes would costs me $12,000. May be you want to consider mixing at home.

A 40% tax on a liter of 100 mg nic would raise it to $85, still chump change. You can pay that tax if necessary and your DIY liquid still costs basically nothing. A similar situation applies to hardware. So you pay 40% more for a mod that's going to last you several years. $15-20 extra dollars compared to smoking is pretty much irrelevent.

The purpose of this tax is to close the vape shops so they aren't there to help people stop smoking. Our governments are just as ruthless as any South American drug cartel.

Amen to that. The government uses our hard earned money for their crap but tax us to death.
I will be looking into the DIY. Thanks for your input.
 

sunnyskyez

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I am going to assume that wherever you buy from, you will still owe the tax, just like cigs. Years ago I knew a couple of guys that were buying cigs by mail from one of the reservations, and after a while the govt. caught up with them, and wanted the tax owed.
Yes they will catch up with you. So I just bought some e-liquid on ebay and will have to print off my invoice and pay the use tax on my income tax in January.
 

sunnyskyez

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My stockpile, which is in addition to what I use every day will be 10 mods, 10 rda's and 500,000 mg of nic. That will last at least 10 years and may be 20 if nic is immortal in the freezer and the mods go for 2 years each instead of 1 year. My cost for all that is $650 (see below). If I paid a 40% tax it goes up to $910. I spent $910 to smoke for 3.6 MONTHS!. I could spend $30,000 to smoke for 10 years or $60,000 to smoke for 20. Buy what you need, pay the damn tax, and tell them to go to hell for the next 10-20 years.
Good for you and all the vape preppers out there. Apparently I waited to long- oh boy!
 

LarryPer

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I am going to assume that wherever you buy from, you will still owe the tax, just like cigs. Years ago I knew a couple of guys that were buying cigs by mail from one of the reservations, and after a while the govt. caught up with them, and wanted the tax owed.
Fasttech does not charge me sales tax and business in New York don't charge tax to Calif
 

Verb

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If you are going to pay the tax according to the way the law reads, please buy as much as you can from non-vape specific retailers. Submission of OTP tax from non-"vapeshop" internet retailers, such as Amazon, sam's club, Home Depot ect. and submission of tax for item purchased retail in-state that are covered by the bill but not being enforced by DoR (screws & o-rings from lowes, VG from Walgreens), will all help prove this bill violates current state laws.
 

skiball

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Dumb question maybe
If you order from China does the tax still apply?
I live in Calif and were going to get this soon
For the moment no this would be the best short term solution. I know fasttech sells original halo e liquid also and some other american brands. Our american companies started selling to chinese vendors for just this reason. Halo is 17$ a 30ml bottle but they only carry 3-4 flavors. For the long term it would be smart to get into diy and stock up on nic asap.

Sent from my LG-E980 using Tapatalk
 

Verb

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Sadly there's still a $5k/5year penalty for possession of products on which the tax has not been paid.

Thankfully, I have receipts showing everything I use was purchased prior to 10/1/2016...

I have my documentation too. But anything I have of value is not covered by the replacement tax anyway.
 

jcoopercam

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They know addicts will pay whatever is required to get their "fix". The OP said it... "...I calmed down over the sticker shock, I realized I just cant give up what I really love and I love to vape!" Personally, I don't crave nicotine laced liquids. I use them, but it doesn't bother me to use zero nicotine liquid. If I want a harder hit, I go heavier on the PG. If they're also taxing PG/VG with the same 40% tax, you may as well buy the nic liquid.
 

Verb

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The PA Vape Association, the Vapor Technology Association and PVA's lobbying firm Kinser & Associates (and probably lobbyists for RJ Reynolds and Altria) are now lobbying PA legislators to replace PA's 40% wholesale tax on all vapor products with a $.075/ml tax on e-liquid (to be paid when product is sold to consumer).

While that change would slash the tax on cigalike e-cigs by >95% (as the 40% tax on a $5 wholesale cigalike is now $2, and would decline to < $.075 since cigalikes contain <1ml of e-liquid), the change would increase the tax on most e-liquid (as the 40% tax on a $8 wholesale 60ml bottle of e-liquid is now $3.20, and would increase to $4.50 for 60ml bottles of e-liquid.

The tax change would be a wash for most PA vape shops (i.e. they'd still pay a similar tax) because
the 40% tax on hardware would disappear, because hardware comprises 20%-25% of vape shop sales, and because the new tax would be paid when sold to consumers (instead of when vape shops buy their products at wholesale price) .

Not sure why VTA and PVA's lobbyist urged PVA to endorse a vapor tax change that will greatly benefit Reynolds, Altria and other cigalike e-cig manufacturers, but that will provide little or no tax relief for PA vape shops, while increasing the tax on most e-liquid.

But I wouldn't be surprised if RJ Reynolds and/or Altria lobbyists and/or $$$ was involved.

The PA Constitution requires PA's budget to be approved by June 30 each year, but it often drags on into the first week of July.

Is zero nicotine eliquid covered by the $.075/ml proposed tax? It wasn't in the $.05/ml proposed last year.
 

Rossum

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The tax on 2 ml of 100mg/ml is $.15. I think the vape shops that survived the past year will figure out how to sell a 30ml bottle without breaking their customers' budgets.

The customers that need 12mg/ml eLiquid might up paying around $.27, maybe half that depending on the concentration.
Color me confused. I thought this tax was per ml of finished e-liquid, without regard for nicotine level?
 

Verb

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Color me confused. I thought this tax was per ml of finished e-liquid, without regard for nicotine level?

It is for anything except zero.

Zero nicotine eliquid is not included in the proposed taxed. I know my local shop has been selling premeasured prepackaged "boosters" since many eliquids don't come higher than 6mg or 12mg anymore. I forget the brand, but it's not in-house.

At least for the time being, several things are pushing open system eliquid distribution in the direction of zero nic flavored eliquid and nicotine in an unflavored solution sold in a separate package. It's the only way a shop will survive in San Fran, the tax all over Cali going over 60%, uncertainty of zero nicotine eliquids future coverage by the deeming regs, ...

I could be wrong, but I don't think it will be long before it's the way many locations will need to operate.
 

Bill Godshall

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Color me confused. I thought this tax was per ml of finished e-liquid, without regard for nicotine level?

That is correct. A $.075/ml tax is a $4.50 tax on each 60ml bottle, and a $9 tax on each 120ml bottle.

While e-liquid containing 100mg/ml would also be taxed at $.075/ml, very few vape shops and online retailers in PA sell 100mg/ml e-liquid to consumers. Also, the last thing the PA legislature should do is encourage even more vapers to mix their own e-liquids.
 
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