Snails - Response on Threads Part 3

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FranC

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  • Oct 1, 2010
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    This is from TropicalVapors website


    After over two years of being in business, we have decided to pack it in and close the store.

    The regulatory environment is just becoming more than we want to deal with. Jurisdictions across the country are proposing and passing laws targeted at vaping, that frankly we don't have the resources to keep up with.

    Now the state of Ohio has proposed a new excise tax (45%) on anything that is vaping related. Since the tax is based on wholesale price and not retail price it would be a nightmare to implement and monitor compliance. And Ohio is just one state. The complexity of applying the tax correctly, keeping the appropriate records for the tax man (or woman) and filing and paying the taxes across multiple jurisdictions is mind boggling. Also, depending on how the law is ultimately written, it would make it very difficult for us to compete in the market with those online vendors that choose to ignore the regulations.

    We believe in this industry and hope that the powers that be don't do anything to make it too difficult or expensive for you all to keep vaping. We will still be open for a while as we close out our existing inventory. All warranties will be honored for products purchased prior to this announcement. The length and scope of the warranty in effect is based on the specific product as described in our terms and conditions.

    We want to thank you all for you business and support over the last two years.
     

    AttyPops

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    Jul 8, 2010
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    Yep. 50 separate fiefdoms. 50 sets of problems. It's a tough balancing act. A lot of companies have to deal with it...but it used to be mostly just sales tax and/or regulated industries....like energy or insurance or whatnot. But NOW...everything is getting wacky.

    I suppose there's state-by-state stuff for tobacco too. Who knows? It's a tough thing for a fledgling industry and small shops to deal with.
    Sad to see them go.

    That letter is probably the best response to CA's issue (Kat's link).
     

    Katya

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    Feb 23, 2010
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    Hello, my dearest friends. Sorry I wasn't here to answer questions but I was trying to get my own talking points straight... The bill was being secretly amended behind closed doors, rumors were flying. NJoy lawyer/lobbyist was apparently having an ex parte communications with the committee. We don't even know if the meeting has been postponed--nobody knows. This bill has already been amended... We'll know more tomorrow. I'll keep you posted and thanks for helping and trying to help. It's not over until it's over.

    I'm tired. And disheartened.

    TTFN
     

    TomCatt

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    Mar 8, 2011
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    fool.com/investing/general/2014/05/06/the-fdas-new-ruling-could-be-good-news-for-the-e-c.aspx

    :facepalm: :confused: :blink:


    What's more, e-cig companies actually appear to be upbeat about the new regulation. For example, the president of Vapor Corp commented:

    I didn't see anything in the proposal that would appear to prohibit growth...The things that have come out are things that are going to enhance public opinion of the product and continue to legitimize us and there's going to be a good comfort level now that the FDA has stepped in.
     
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