Indiana Considers Vaping Tax

(INDIANAPOLIS) – Legislators appear unlikely to raise cigarette taxes. But they might tax nicotine in another way.

A House committee could vote next week on taxing e-cigarettes for the first time. Ways and Means Chairman Tim Brown’s (R-Crawfordsville) bill would tax vaping based on the amount of e-liquid — that’s anywhere from eight to 24 cents for each cartridge, or 40 cents for a five-milliliter bottle.

By most estimates, an e-cigarette cartridge gives you about the same puffing time as a pack of cigarettes. But while Indiana has a cigarette tax of about a dollar a pack, there is no e-liquid tax. House Speaker Brian Bosma (R-Indianapolis) says that’s something of a loophole. He says studies show a high number of teenage vapers, and suggest they’re likely to move on to smoking. He says many legislators are willing to support a rare new state tax as a result.

Bosma says vaping manufacturers have indicated they’re not opposed to a tax as long as the rate isn’t exorbitant.

Bosma says he doesn’t see any similar enthusiasm among House members for health and business leaders’ call to triple the cigarette tax as a means of reducing the number of smokers.

Legislative analysts estimate the tax would raise between $4.5 and $7.8 million a year.

(Photo: librakv/Thinkstock)