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

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Sugar_and_Spice

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Actually, that's exactly what I think it says. Just trying to clarify.
If you don't reside in PA you certainly are not going to file a state tax return with them. You only file in the state where you live or is considered to be your home residence.
 
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Woofer

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If you don't reside in PA you certainly are not going to file a state tax return with them. You only file in the state where you live or is considered to be your home residence.

Well that makes sense.. so you are probably wrong. :(
 

Princess Zelda

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I've lurked this forum for a few months and of all things it's this that makes me finally register to post.

As a PA resident, I am really disappointed in this and more than a little angry. PA has so many taxes on everything, and for all the revenue they collect via taxes, very little is done in return for the people who live there. If the state were actually doing something good with the funds, that would be one thing, but that's not the case at all and all.

Philadephia started taxing things like sodas and sugary drinks to supposedly help fund healthcare, yet healthcare has only gotten worse in recent years. Where has all of that extra revenue gone? Who knows. But definitely not towards healthcare or fixing up the decrepit areas that litter most of the city.

PA collects a huge income through PennDot and are the roads every promptly fixed when they need repair? Nope. Can't tell you how many times I've ruined a tire or rim due to driving over an unexpected pot hole. PA doesn't even usually bother to salt the roads when it snows either so there's plenty of others out there who have far worse problems than a wrecked tire.

If PA were actually putting the tax money back into the community, I wouldn't mind a 6% sales tax on stuff like digital downloading, vape products, etc. But sadly that is not the case. Instead it's just another gigantic black hole for money to sink into and never be seen again.

A 40% tax is beyond excessive and an impossibly high bill for most business owners, especially small shops, to pay and still remain in business. I only got into vaping recently, but lately I have seen quite a number of places fill up with new vape shops, places that have otherwise been vacant since the recession. It's really sad knowing that many of these will probably go back to empty all over again. Empty stores hurt the surrounding businesses too.

I am personally also very surprised that Wolf signed his bill, especially after all of the strict alcohol laws that he has helped to reform recently. The new tax on vaping, among other things, really feels like it has come out of nowhere.
 

ENAUD

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Yes, the rules have been in place for many years that say if you purchase cigarettes outside of Pa you still owe taxes on them and if not paid you can be guilty of a felony, $5000 fine and 5 year inprisonment. Many states have a similar law.

What if I fail to file a return and pay the taxes I owe on purchases of cigarettes over the Internet, mail order, or other cigarette retail stores located outside the state of PA?
Interesting, found this: Are cigarettes purchased from Native American Reservations tax-exempt? so it appears that Penn residents are limited to one carton of cigarettes without a tax stamp from Penn, but they are still responsible for paying the tax. Maybe it is just an oversite that they didn't set a limit on e-juice or hardware yet. And thinking further on this, how will they determine a comparable volume of e-liquid and will they even be able to set a limit on hardware... coils...tanks...this can of worms will undoubtedly be so convoluted that even lawyers won't be able to give a double speak strait answer. Probably best to just tax them darned things out of existence. <<humor ;)
 

Sugar_and_Spice

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Well that makes sense.. so you are probably wrong. :(
I just skimmed through the PA Tax Bill and it all pertains to the filing of taxes by residents of the state of PA. So....I don't think the State of PA is gonna pull over a non-resident to make them file a return if they do not reside in PA. That is just silly.
 

Woofer

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I just skimmed through the PA Tax Bill and it all pertains to the filing of taxes by residents of the state of PA. So....I don't think the State of PA is gonna pull over a non-resident to make them file a return if they do not reside in PA. That is just silly.

I was joking kinda sorta... makes no sense, silly must be the rule. :w00t:
 

CMD-Ky

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So wait...is this really saying that you can't bring cigarettes in from other states either? You can only possess what you buy in state? That is...insane...

Surely there is a commerce clause violation here somewhere, the Supremes seem to find such a violation in the most obscure places. See Wickard v. Filburn, 317 U.S. 111 (1942)
 

Verb

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Surely there is a commerce clause violation here somewhere, the Supremes seem to find such a violation in the most obscure places. See Wickard v. Filburn, 317 U.S. 111 (1942)

The tax is not imposed for what you bring into the state, you are tax for what you plan on using in the state. Freaking words. When purchased in state you pay a sales tax, when purchased out of state and brought into the state you pay a use tax.
 

Verb

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I wonder if my electric power distributor is going to register as a tobacco retailer. I also wonder how they will meter my consumption to know the amount used to charge vape batteries Vs other uses. Best not question too much, they'll just slap the 40% tax onto all the electricity I consume.
 

JUDGMENT AFFIRMED

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I wonder if my electric power distributor is going to register as a tobacco retailer. I also wonder how they will meter my consumption to know the amount used to charge vape batteries Vs other uses. Best not question too much, they'll just slap the 40% tax onto all the electricity I consume.

:lol::lol::lol: :eek::eek::eek::eek: :-x:-x:-x
 
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RoboVape

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I live in the Pgh area. Ohio and West Virginia are right down the road. If one gets what they need there I doubt anything would ever come of it. I feel bad for the PA shop owners but this state is so messed up I am not surprised this happened. One's Internet purchases could go to friends or family outside of PA before they ship to them.
 

Katmar

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    It's about revenue. Local, state, federal... at every level government needs/wants more money. Vaping is a fast growing and relatively new industry which if tied to tobacco means sin tax rates. The sky is the limit on those.

    It may be about revenue, but Pa is soon to find out there won't BE any from the vape industry, as the shops close all across the state and people find other ways of obtaining what they need. If they had done this properly, they would be taking in more tax dollars. Instead, they are running them out of the state.
     

    grandmato5

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    But this applies to residents of the state of PA. If a traveler from out of state happens to have a few packs of smokes on them, I don't think this applies.

    No one is going to bother anyone from out of state for having a few packs of untaxed by PA cigarettes on them. It's an entirely different case if that out of state person has a back seat full of cartons of untaxed in PA cigarettes when they get stopped for a traffic violation. Same principle is applied to anyone living in PA. They may be able to apply the law to a single pack of cigarettes for anyone but its NOT what they do or will ever do. Not worth the trouble for a few dollars.

    The same principle will be applied to our ecigs in PA. No one is going to be questioned by the police for having an ecig on them if they are from out of state or live in state. There isn't going to be a police patrol out looking and checking on individuals. BUT if one gets stopped for a traffic violation and their back seat is filled with ecigs they will be questioned and could be charged with possession of untaxed ecigs.
     

    Rossum

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    Gov. Wolf is doing what a good Liberal democrat does, TAX..( mind you ,the republic rats are not far behind).....and grow government ..........its PA today, the rest of the nation tomorrow I fear
    Yep, last year he wanted substantial increases in both the state income tax and the sales tax, and the legislature told him: "No". He did get a substantial increase in fuel taxes though, and PA now has some of the highest motor fuel prices in the country. I have a couple of diesel vehicles with 700+ mile range. I make it a point to fill up in other states whenever I can, where I fuel is as as much as $0.50 a gallon less. I'm not a cheapskate, but $10 is $10.
     

    MikeE3

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    Yep, last year he wanted substantial increases in both the state income tax and the sales tax, and the legislature told him: "No". He did get a substantial increase in fuel taxes though, and PA now has some of the highest motor fuel prices in the country. I have a couple of diesel vehicles with 700+ mile range. I make it a point to fill up in other states whenever I can, where I fuel is as as much as $0.50 a gallon less. I'm not a cheapskate, but $10 is $10.

    And 'he' tried justifying the fuel tax increase by saying the price of crude oil has dropped. What a joke!
     
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