Vape Tax Dead -- for Now

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Vape Tax Dead -- for Now

Senate replaces proposed e-cigarette tax with call for further study

(INDIANAPOLIS) - You might not pay more for vaping after all.

On a voice vote, senators have gutted a bill to impose a tax on e-liquids, calling instead for a study of the issue. Logansport Republican Randy Head says he supports taxing e-cigarettes in principle, but says there's a lot of uncertainty about the best way to do it. He says he'd rather wait a year to impose the tax than move quickly to do the wrong thing.

The House voted to tax the amount of e-liquid, while a Senate committee had proposed a flat tax of 20%. If you buy a five-milliliter bottle for two bucks, the House version would cost you an extra 20 cents -- the Senate bill would have been twice that.

Head says his preference would be a tax based on nicotine content, but says there are practical problems with calculating that. He says the 20% tax could create a burden on retailers in figuring out how to collect it.

The tax isn't dead yet -- the House can object to the changes and call for negotiations. Ways and Means Co-Chairman Todd Huston (R-Fishers) says the House will do exactly that. He says while it's not a crisis if it doesn't happen, it's a significant health concern, especially in middle and high schools, and there's no need to wait. Head says he hopes House and Senate negotiators are able to come up with a workable approach.

(Photo: librakv/Thinkstock)

 

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