Paul Blair of the Americans for Tax Reform reported that Senate Bill 1012 passed 63-45 on June 13, and the revenue from the tax is expected to bring $98 million extra dollars to the state in the next year.
A pack of cigarettes will see $.65 added at the cash register, and 7.5 cents per mL e-liquid tax has been added.
The Americans for Tax Reform wrote about the dangers of taxing:
“Targeted excise taxes have proven to be unstable sources of revenue, and ultimately can cause a reduction in tax receipts…In fact, only three out of the 32 state tobacco tax increases, enacted between 2009 and 2013, have met or exceeded tax revenue projects. These tobacco-free technology products are helping tens of thousands of smokers make the transition to far healthier alternatives. By imposing a 7.5-cent per mL tax on e-cigarettes…this punitive tax is both anti-health and a shameless cash grab…It is reckless to destroy with tax hikes small businesses accomplishing what tax hikes on cigarettes never could, getting people to quit smoking.”
Additionally, the new law states that “No wholesaler or other person may purchase e-cigarette liquids from any seller not approved by the Tax Commission.”
For the full story, visit http://www.atr.org/west-virginia-legislature-passes-massive-new-tax-vapor-products.