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Utah moves to Tax E-cigs like regular Tobacco

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Esharp

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dliteful

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Utah Rep. Paul Ray is spreading ignorant lies and he's making laws based on them. I'll be writing him a letter (I keep a master letter on my computer for these occasions--it's harder to ignore getting a bunch of snail mail directed at you.) Address and number provided here: http://le.utah.gov/house2/detail.jsp?i=RAYP
Thanks for sharing.
 
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Esharp

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It's more serious than just taxation for Utah. They are also trying to make internet sale of e-cigs illegal, which I believe would effectively close down existing e-cig businesses in the state. Check out this thread for more info.

Banning online sales would be absolutely brutal for us vapors. There's more than one way to skin a cat. I still don't get it, why such a hard line on e-cigs. The proposed on-line ban is just to ensure they get their tax dollars and don't miss a cent. I'm sure the good people of Utah will just drive across state lines and stock up, I find it hard to imagine the vapors of Utah are just going to roll over and pay the taxes.
 

Uncle Willie

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Banning online sales would be absolutely brutal for us vapors. There's more than one way to skin a cat. I still don't get it, why such a hard line on e-cigs. The proposed on-line ban is just to ensure they get their tax dollars and don't miss a cent. I'm sure the good people of Utah will just drive across state lines and stock up, I find it hard to imagine the vapors of Utah are just going to roll over and pay the taxes.

If it were all about the money, would States not welcome and tax all sales avenues whether B&M or online .. ??
 

Hello World

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Banning online sales would be absolutely brutal for us vapors. There's more than one way to skin a cat. I still don't get it, why such a hard line on e-cigs. The proposed on-line ban is just to ensure they get their tax dollars and don't miss a cent. I'm sure the good people of Utah will just drive across state lines and stock up, I find it hard to imagine the vapors of Utah are just going to roll over and pay the taxes.
To me, their policy makes little sense.

They can't stop anyone buying their juice liquids from out-of-state as the result of banning state online sales. Lots of vendors who will still take your Western Union money order and ship to wherever, and little more than inconveniences are being achieved. Utah's B&Ms are gonna go under in all likelihood, and the state does not benefit from levying this 86% tax at all. From all appearances it's a BP pushed agenda, since this legislation creates little if any financial gain to the state. Further, the state does not want to loose the revenue from tobacco sales either.
 
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martinc

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Good point HW,why not make the stuff on equal plane price-wise with BP's products...

...after all,people are so dumb they wont probably bother with e-cigs anymore due to all the hassles involved compared to the excellent and effective product they offer to the ploebes at virtually every 2 street corners!
 

Ryedan

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To me, their policy makes little sense.

They can't stop anyone buying their juice liquids from out-of-state as the result of banning state online sales. Lots of vendors who will still take your Western Union money order and ship to wherever, and little more than inconveniences are being achieved. Utah's B&Ms are gonna go under in all likelihood, and the state does not benefit from levying this 86% tax at all. From all appearances it's a BP pushed agenda, since this legislation creates little if any financial gain to the state. Further, the state does not want to loose the revenue from tobacco sales either.

People will be able to go out of state to buy supplies, but not everyone will be able to and internet sales into Utah will become a crime. Here's an excerpt from the call to action:

"4. Sections 1 and 7 also would decimate e-cigarette vendors in Utah who sell via the Internet or prompt them to move out-of-state. The sections could also empower the Utah Attorney General to prosecute out-of-state e-cigarette vendors for selling online to consumers in Utah, prompting many e-cigarette consumers in Utah to travel out-of-state to purchase the products. As such, Sections 1 and 7 would harm Utah businesses and reduce state tax revenue.


5. Section 7 may lead to thousands (perhaps tens of thousands) of Utah e-cigarette users being unable to purchase anything more than a small number of e-cigarette brands. Utah covers over 80,000 square miles and contains less than 15 e-cigarette specialty stores, making storefronts inaccessible or inconvenient to many in the State."

Online sale of cigarettes has also been illegal in Utah since 2009. Funny place Utah. Polygamy is cool, but vaping is baaaaaddd!
 

Ryedan

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I haven't yet checked into this, but it seems to me "Internet Sales" is a financial transaction via the internet. I would think a phone call and money order would not qualify as "Internet Sales".

Unfortunately, they've got that covered. From the call to action:

"Ban sales through the mail and Internet by requiring face-to-face transactions. (Section 7)"

:facepalm:
 

Toronto_Mike

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I don't know how a court could approve such a farce. How in the world would the state control shipments coming in from other states & countries? Would they actually hire "State Ecig Enforcement Officers"? to assist in all the major postal distribution centers as well as all the courier centers like Fedex UPS & DHL? On top of this, Utah would have to assign state troopers & a task force to police & combat illegal distribution within Utah. The state would end up spending more in salaries then the tax that they propose to collect.

Looks to be another case when the simple minded fools in office, table an idea without fully thinking out the details.

Here's some free advice, Utah. Raise your taxes on tobacco & leave the vaper, alone.
 
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Hello World

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Unfortunately, they've got that covered. From the call to action:

"Ban sales through the mail and Internet by requiring face-to-face transactions. (Section 7)"

:facepalm:

I don't know how a court could approve such a farce.

I was going to say there ... that's treading on extremely thin legal ice ... lol

To tell a business in another state how they can and cannot do business, and what means they can and cannot sell is nearly Gestapo 101. Great to hear they had the good sense to vote it down.

Funny place Utah. Polygamy is cool, but vaping is baaaaaddd!
Based on the ridiculousness they try to throw legislation together, I might just start to sympathize with those guys too. :laugh:
 
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