Alright, so I was reading over a house bill that just passed here in Hawaii "with amendments"
Not exactly sure what the amendments are, so this could be irrelevant, but the concept still holds true.
The legislature imposes an 80% tax on "tobacco Products" which they have conveniently bundled electronic cigarettes into.
So, what would stop a vape shop from selling all 0 nic juices, and adding nicotine as a separate purchase. For example, I buy a 30mL bottle of juice with zero nic, and then I buy enough nicotine concentrate to bump it up to say 6mg/ml
They sell me the juice for $15 (Hypothetical here) and sell me the nicotine for $1.00
So all that would get taxed is the nicotine because that's the only "Tobacco Product" (by their definition). So we only pay 80 cents in taxes rather than $12.80
If I ran a vape shop, this is what I'd be doing to prevent my customers from taking their business out of state, or worse going back to stinky sticks...
As far as I know, they would be hard pressed to define any of the electronic equipment as tobacco products, or juice without nicotine.
Is selling the nicotine as a separate purchase a viable strategy for defeating these ridiculous laws that are being proposed all over the country?
Not exactly sure what the amendments are, so this could be irrelevant, but the concept still holds true.
The legislature imposes an 80% tax on "tobacco Products" which they have conveniently bundled electronic cigarettes into.
So, what would stop a vape shop from selling all 0 nic juices, and adding nicotine as a separate purchase. For example, I buy a 30mL bottle of juice with zero nic, and then I buy enough nicotine concentrate to bump it up to say 6mg/ml
They sell me the juice for $15 (Hypothetical here) and sell me the nicotine for $1.00
So all that would get taxed is the nicotine because that's the only "Tobacco Product" (by their definition). So we only pay 80 cents in taxes rather than $12.80
If I ran a vape shop, this is what I'd be doing to prevent my customers from taking their business out of state, or worse going back to stinky sticks...
As far as I know, they would be hard pressed to define any of the electronic equipment as tobacco products, or juice without nicotine.
Is selling the nicotine as a separate purchase a viable strategy for defeating these ridiculous laws that are being proposed all over the country?