Jun 05, 2014

New Jersey Pushes Legislation to Tax E-Cigarettes the Same as Traditional Cigarettes

Electronic cigaretteSome are happier than others concerning the recent legislation proposing the same taxation on electronic cigarettes as traditional cigarettes. Not only is the state of New Jersey considering such legislation, but it is also going as far as proposing that the same tax should be added to cigars, smokeless tobacco and other tobacco products. E-cigarette and tobacco wholesalers, consumers and retailers are not happy with the legislation. On the other hand, public health advocates are applauding this measure.

According to The Association for Convenience & Fuel Retailing (NACS), “The governor’s planned tax hike on electronic cigarettes would generate $35 million for the next fiscal year, which starts July 1. However, state Sens. Joseph Vitale and Richard Codey have put forth a bill that would also add the tax to other tobacco products, which would bring in an additional $22 million.” The Senate bill would then designate those funds towards research and programs; such as, prevention and research on cancer, prevention and control programs, drug abuse treatment, etc.

With revenue from taxing traditional cigarettes declining, states are pursuing taxing e-cigarettes as well. As always, it is about needing the money. In a statement to NACS, Sal Risalvato, executive director of the New Jersey Gasoline Convenience Automotive Association, states that “They have always used tobacco products as an important profit center.”

New Jersey is not the only state considering such legislation. According to Alex Brill and Alan D. Viard of U.S. News & World Report, “Minnesota already imposes tobacco taxes on e-cigarettes and similar proposals have emerged in Hawaii, Indiana, Kentucky, Massachusetts, New Jersey, Ohio, Oklahoma, Rhode Island, South Carolina, Utah, Washington and Wisconsin.

Those that are upset about the legislation for the tax feel that there is no excuse for taxing a product that can help people quit smoking. Especially since it will improve health and ultimately save lives. The fear is that the tax will raise the price of e-cigarettes; thus, discouraging their purchase and encouraging smokers to switch from the harmful, traditional cigarettes.

With the legislation for taxes on e-cigarettes underway for many states, electronic cigarette businesses are going to need more options and help in getting started and finding a good provider. eMerchantBroker.com, for example, is the leading provider of electronic cigarette merchant accounts. Whether you sell vaporizers, e-liquids, e-juices, e-cigs, or other e-cig accessories, they promise to supply you with a low rate merchant account.

At eMerchantBroker.com, we have been helping the electronic cigarette industry with payment processing since the birth of the industry years ago. We have helped thousands of small business owners and entrepreneurs get started in the electronic cigarette business.

If you’re a vape shop owner and need an e-cigarette merchant account, contact us today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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