The Pennsylvania Senate and House of Representatives are considering legislation to eliminate the 40% tax placed on the existing inventory of e-cigarettes and vaping products in the FY 2016-17 Budget, and replace it with a 5-cents-per-milliliter retail tax on e-liquid.
The current wholesale tax rate of 40% was established last year in an effort to close the budget deficit that existed at that time. Additionally damaging, the tax was applied retroactively by including existing inventory of e-cigarettes and vaping products, and retailers offering these products across the state have been closing doors ever since. Replacing the onerous 40% wholesale tax on vaping products, and replacing it with a 5-cent-per-millileter tax on vaping liquid would help protect more businesses from closing as well.
PFMA strongly supports this legislation, which would remove a tax so excessive it has put many retailers of these products out of business. Senate Bill 508 was introduced by Senator Camera Bartolotta, but the House’s version of the bill, by Representative Jeff Wheeland, has not yet been introduced. Senator Bartolotta’s legislation has been passed out of the Senate Finance Committee, and is now being considered by the full Senate.
The current wholesale tax rate of 40% was established last year in an effort to close the budget deficit that existed at that time. Additionally damaging, the tax was applied retroactively by including existing inventory of e-cigarettes and vaping products, and retailers offering these products across the state have been closing doors ever since. Replacing the onerous 40% wholesale tax on vaping products, and replacing it with a 5-cent-per-millileter tax on vaping liquid would help protect more businesses from closing as well.
PFMA strongly supports this legislation, which would remove a tax so excessive it has put many retailers of these products out of business. Senate Bill 508 was introduced by Senator Camera Bartolotta, but the House’s version of the bill, by Representative Jeff Wheeland, has not yet been introduced. Senator Bartolotta’s legislation has been passed out of the Senate Finance Committee, and is now being considered by the full Senate.
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