E-Cigarette regulations have been a big source of discussion in recent times, and even with the FDA ruling that regulations regarding their usage by minors are necessary, many users are still wondering where talks of taxing electronic cigarettes will go.
Many are concerned that electronic cigarettes will soon be taxed similarly traditional cigarettes, as many people, most notably legislators, are pushing for them to regarded in the same manner. Among the states considering taxing electronic alternatives are Rhode Island, South Carolina, Indiana, Kentucky, Oregon, Washing, New York, New Jersey, and Indiana. They see this form of taxation as a positive gesture because the revenue on e-cigarettes is growing, and with sales encroaching upon the $2 billion mark, and expected to hit around $10 billion worldwide by 2017, the potential of taxation looks promising to legislators who see the move as beneficial to the economy.
The city of Olympia, Washington has been pushing for a high tax on e-cigarettes and accessories for some time now. Their House approved at 75% tax on e-cigarette products, however the committee is attempting to amend this bill, which is currently slated to incur $35 million yearly just for the city of Olympia. A taxation of this magnitude goes beyond even the taxes currently implemented on marijuana, alcohol, and even some types of tobacco products, which seems rather incongruent in terms of fairness.
However, this sort of drastic taxation, which would clearly drive the prices of electronic cigarettes and their accompanying products to much greater expenditures, will not be met without immense controversy and debate from the electronic cigarette community. A large portion of small business that specialize in e-cigarette products would be detrimentally affected, and the industry as a whole would see decreases in sales if this sort of taxation were to become national.
While no major decisions have been made, with this burgeoning industry comes the impending decisions on how to handle the massive sales electronic cigarettes continue to bring in. Many feel that e-cigarette taxation is merely a matter of time away, and we all hope that the most fair, practical decisions be made without harm to the industry. Electronic smokers deserve the products they want, without unfair costs attached.