Beginning October first, all vaping products in Washington D.C. will be subject to 67% excise tax. What does this mean for vapers and vape store owners alike?
The Washington D.C. local government will start applying a 67% excise tax to all vape products starting October first. The tax will be implemented to keep e-cigarettes in line with combustible tobacco products, even though e-cigarettes do not rely on combustion or use tobacco.
Because of this, most vape shop owners in the DC area are preparing to lose their business since the tax will eat up all their profits.
According to the Daily Caller, vape store owners have been renegotiating their store’s leases to end their contracts early. Since the tax is not on the store itself, but on all vaping related product that is being sold.
As described by the Daily Caller:
“To put it in real terms, if a wholesaler were to sell a $100 vaporizer to a vape store, it would need to pay the city an extra $70 for the privilege. The excise tax is imposed on the first person that possesses or sells vapor products in the city, but if the wholesaler is based outside the district, the tax burden falls on the retailer. The tax applies to all parts of the vaporizer, not just the e-liquid that contains the nicotine, which vape store owners emphasized repeatedly, is not a tobacco product. All the individual components of the vaporizer including batteries, coils that heat the vapor, and even decorative tips will be taxed at the 67 percent rate.”
The new excise tax will mostly kill off the vaping industry and culture in the DC area. The only vape products most likely to be left are the ones sold by big tobacco companies who can afford the tax.
For vapers, this would mean limited choices in all vape related products. Most vapers agree that the products sold by big tobacco companies are inferior compared to the ones manufactured and created by small-time modders and e-juice makers.
Whether the implementation of the excise tax is the result of the big tobacco companies pulling their weight to get rid of the competition or not is all up in the air. The bottom line is, the new tax is virtually killing off vaping in Washington DC.