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New tax on vape set to take effect in October; cost will increase

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E-cigarettes are smoke-free electronic products that turn nicotine and other chemicals into vapor inhaled by the user.

HARRISBURG,Pa. – In this year’s budget a 40 percent whole sale tax, on vape, was approved to generate approximately $13 million. The tax is set to take effect on October first and requires all vape shop owners to pay the 40 percent tax on their inventory.

“I have $100,000 in inventory. I have to write a $40,000 check which nobody here can afford,” said shop owner, LLoyd Hewitt.

In anticipation of the tax, state statistics show, more than 50 shops have already closed and more than a hundred people have lost their jobs. People against the tax gathered at a rally at the Capitol on Monday.They say it is not only a vape issue, but an economic one.

They are pushing for a compromise and want HB 2342 to pass that would repeal the excise tax and create a $.05 per-milliliter tax. The bill is sponsored by Republican Representative, Jeff Wheeland.

“Government can put that business out of business by over regulation or over taxation. What do we have here today? Both” said Wheeland.

The General Assembly is in session all week and the bill could be discussed.