Basically, it will come down to the current court case...
If the FDA wins
Electronic cigarettes will be declared drug delivery
devices, and they will immediately be taken off the market.
The FDA will step up their efforts to confiscate shipments of anything and everything electronic cigarette related.
All electonic cigarette businesses in the United States will go out of business.
Electronic cigarettes will only return to the market after someone has applied for marketing them as a drug delivery
device.
That process takes years, and is extremely expensive, and many studies must be conducted.
And then they will only return to market if approved by the FDA, which they may not be.
And if they do return, they will be extremely expensive, and possibly require a prescription.
If the FDA loses
Electronic cigarettes will be treated as
tobacco products.
They will then be regulated by the FDA under the authority given by the Family Smoking Prevention and Tobacco Control Act.
Most likely they will available only in tamper-proof cartridges.
Most likely they will have strict limits on the nicotine strength, and it will probably be quite low.
It is also a strong possibility that they will remove all flavors, and only tobacco (and maybe menthol) flavors will be available.
Then the government will eventually establish a tax schedule for electronic cigarettes.
The current tax structure for tobacco products is mostly based on perceived harm of a given tobacco product.
For this reason, it seems safe to assume that the tax rate may not be that high as most people think.
Tobacco products are basically supposed to be taxed in relation to the harm they are believed to cause.
And because of that, electronic cigarettes should be taxed at rates comparable to snuff and snus.
I assume these are the current Federal Excise Taxes...
TTB Tax and Fee Rate
Code:
[B]Tobacco Products [/B][B]1000 units [/B][B]Pack of 20[/B]
Small Cigarettes $50.33 $1.01
Large Cigarettes $105.69 $2.11
Small Cigars $50.33 $1.01
[B]Tobacco Products [/B][B]1 lb. [/B][B]Tin or Pouch[/B]
Pipe Tobacco $2.8311 $0.1769
Chewing Tobacco $0.5033 $0.0315
Snuff $1.51 $0.0944
Roll-your-own Tobacco $24.78 $1.5488