Some 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.
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