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Updated!! Pennsylvania: 40% tax = game over for vape

Discussion in 'ECF Competitions and Broadcasts' started by Oliver, Jul 14, 2016.

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  1. Oliver

    Oliver ECF Founder, formerly SmokeyJoe Admin Verified Member

    [EDIT] CASAA have just released a call to action: CASAA: PA - Take action to oppose a 40 percent wholesale tax on vapor products.

    **Pennsylvania Update**

    Article 12-A of HB 1198 -- the revenue portion of Pennsylvania's 2017 budget -- is a death warrant. The tax imposed is so high, so sudden, and so poorly considered that few vapor retailers are likely to survive. There is no loophole or bright side for consumers either. In fact, the state has managed to criminalize possession of vapor products for which the tax has not been paid.

    This is, without a doubt, one of, if not the, worst pieces of vapor tax legislation we have seen. Pennsylvania will not collect the estimated amount of revenue expected from this tax and will harm hundreds of thousands of PA residents in the process.

    This is desperately sad. The State of Pennsylvania has just passed a bill which places a 40% tax on the wholesale price of vaping products sold in the state.

    Significantly, this includes a "floor tax" meaning that the day after the bill is enacted, each vape store must pay the state a sum equal to 40% of the value of all inventory currently held by that store.

    Put simply, most vape stores will not be able to pay this, and will shut up shop.

    It's hard to imagine why Pennsylvania would do this. The tax clearly won't bring any significant revenues if stores close and vapers buy their product out of state via online and interstate purchasing. It looks to me like a move to purposely shut the stores down.

    It's also yet another wake up call for vapers everywhere. If you're not a member of CASAA, please join so you can get a heads up on any action concerning your state. In a matter of weeks we've witnessed the closing down of the vape industry in two US States. It's doubtful they'll be the last.

    EDIT: Chris Hughes (a great guy) from Fat Cat Vapor Shop wrote on Facebook:
    • Like Like x 33
  2. Princessdee

    Princessdee Ultra Member Verified Member ECF Veteran

    Mar 23, 2009
    PA, USA
    Just can't bring myself to "like" this post. :cry:
    Oh, they covered online too. But it's beyond me how an individual is supposed to know the "wholesale price" of whatever they buy to actually pay the tax (assuming they were so inclined as to pay it)
    • Like Like x 8
  3. AG51

    AG51 ECF Guru ECF Veteran

    Jan 23, 2011
    Dat Way →
    • Like Like x 4
  4. Canadian_Vaper

    Canadian_Vaper Vaping Master ECF Veteran

    Jul 30, 2015
    ON. Canada
    I read about this yesterday in one of my advocacy groups, clearly lawmakers don't understand the industry or they are simply trying to bury it...

    Since the only thing containing nicotine is the juice I could see a 15% tax on the juice alone working out but to tax vape items across the board more than sales tax is absolutely insane, vape shops in PA must be freaking out, you don't pay tobacco related taxes on Hooka's and Tobacco Pipes or Zippo's do you? Nope, should be the same for Vaping paraphernalia.
    • Like Like x 10
  5. MrDripper

    MrDripper Super Member ECF Veteran

    As a (once) proud Pennsylvanian born man, I am deeply saddened by this news. The more this happens, the more we see just how far BT's reach is. Because, let's face it, this is all it is REALLY about. Lost tax revenue by people switching to vaping and the tobacco sales just plummet. One day, a state will realize and welcome vapers with open arms...A Vapetopia...if you will...?
    In any case, while you can...
    Vape On!
    • Like Like x 12
  6. bnrkwest

    bnrkwest Vaping Master Verified Member ECF Veteran

    Sep 6, 2011
    Somewhere out there
    Sad day for vape in PA
    • Like Like x 6
  7. AtmizrOpin

    AtmizrOpin Ultra Member Verified Member ECF Veteran

    May 18, 2015
    there are some really nice vape stores around here and the Pittsburgh area. good places to see new products that just came on the market in person. not good, sad days people.
    • Like Like x 4
  8. KennedyKills

    KennedyKills Full Member

    Jul 3, 2015
    Well it seems like this is the future of vaping people.. if you havent already please contact your local representative about hr2058 and cole bishop!! We are running out of time!
    • Like Like x 8
  9. Ramsay Bolton

    Ramsay Bolton Vaping Master ECF Veteran

    Aug 25, 2013
    Beyond the Grave
    This world is upside down!
    • Like Like x 9
  10. Katmar

    Katmar Vaping Master ECF Veteran

    Sep 19, 2009
    Pittsburgh, Pa
    I am deeply saddened by this. How they are able to levy such a HUGE tax is beyond me. These are OUR representatives, People. A sad and angry day for my home state.
    • Like Like x 7
  11. Katmar

    Katmar Vaping Master ECF Veteran

    Sep 19, 2009
    Pittsburgh, Pa
    How have they covered online, Princessdee?
    • Like Like x 2
  12. mattiem

    mattiem ECF Guru Verified Member ECF Veteran

    This is definitely a call to action to everyone that thinks it can't happen in their state.
    It is like a virus spreading across the US like a wildfire :(
    • Like Like x 14
  13. BackDoc

    BackDoc Ultra Member Verified Member ECF Veteran

    Nov 24, 2010
    Galts Gulch
    And they ask me why i'm voting trump
    • Like Like x 17
  14. CMD-Ky

    CMD-Ky Vaping Master Verified Member ECF Veteran

    Supporting member
    Sep 15, 2013
    Re-elect No One!
    • Like Like x 20
  15. Princessdee

    Princessdee Ultra Member Verified Member ECF Veteran

    Mar 23, 2009
    PA, USA
    All I know is this, quoted from post # 55 in this thread:Smokefree PA urges General Assembly to hike cigarette tax, but to NOT tax vapor or smokeless

    "Internet purchases are permitted, but the buyer is responsible for paying the 40% wholesale tax on the retail price payed. The tax must be payed by the 20th of the month following the purchase."

    Post #56 also mentions it.

    (Mod: if cross quoting is not allowed, I forget, please edit for me)
    • Like Like x 7
  16. Princessdee

    Princessdee Ultra Member Verified Member ECF Veteran

    Mar 23, 2009
    PA, USA
    I know you guys have it bad down there, too, mattie :(
    • Like Like x 4
  17. Katmar

    Katmar Vaping Master ECF Veteran

    Sep 19, 2009
    Pittsburgh, Pa
    They did this to us over purchasing cigarettes over the internet. I got hit with a pretty high bill, and did NOT know I was supposed to be paying taxes. This is a MESS!!! DIY is coming to my home sooner than I planned.
    • Like Like x 8
  18. Verb

    Verb Ultra Member Verified Member ECF Veteran

    Apr 26, 2014
    Eastern, PA, USA
    For online purchases, a consumer is classed an "unclassified importer." The 40% tax is applied to the purchase price not the wholesale price. It is due by the 20th of the month following the purchase with the appropriate forms filed, unless the department states less frequent submission is permitted
    • Like Like x 7
  19. YoursTruli

    YoursTruli Vaping Master Verified Member ECF Veteran

    May 27, 2012

    .............who just named Indiana Governor Mike Pence as his running mate AND we all know what has happened in Indiana in regards to vaping/businesses :eek: .....yeah lets put him second in command of the country :facepalm:
    • Like Like x 39
  20. Princessdee

    Princessdee Ultra Member Verified Member ECF Veteran

    Mar 23, 2009
    PA, USA
    Thanks, Verb. I was just in the actual bill trying to copy the pats I wanted to post and that was one of them.
    • Like Like x 2
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