Pennsylvania’s Vaping Tax Threatening to Force State Vape Businesses to Close
An outrageous Pennsylvanian tax is already responsible for over 70 vape businesses closing their doors in the last several months. Now when the Tobacco Products Act goes into full effect this week, it can be expected to drive out of business those stores that managed to keep afloat.
To recap, this Act equates vaping gear and e liquids with other tobacco products and imposes a 40% wholesaler tax on both. Of course, that isn’t the worst part – everything from cotton and coils to batteries and chargers is subject to the same tax! Store owners are also required to pay a 40% tax on the entire inventory they keep in store.
Bob Oesterling, a vape shop owner, is suing Pennsylvania’s Department of Revenue, claiming that they are overreaching when including individual components as taxable. The Act identifies e-cigs as devices used for inhalation and liquids that go in them, without mentioning individual components.
Mr. Oesterling says this Act will be the last nail in the coffin for a lot of vaping businesses in PA. ‘They are purposely trying to put us out of business because the decrease in smokers means less money from the Tobacco Master Settlement Agreement for the State’.
Original post by Paula Reed Ward