First Step Taken To Repeal 40% Tax In PA

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Vape shops in Pennsylvania may have some good news for a change.

Fox43 is reporting that earlier this week, the state’s House Finance Committee voted to repeal the 40 percent tax hike on vaping products. This was a tax hike that was created in order to provide a much-needed boost to the $650 million tax hike package that Governor Wolf signed into law earlier this summer.

Unfortunately, the tax hike was retroactive, meaning that many vape shop owners would incur taxes on products already on their shelves starting in October, with the payment due in December. This has been an issue for many vape shops because the tax payments are so high that most shops wouldn’t see a profit if they had to pay the tax. The only way the shops would be able to pay the tax is to raise their own prices, effectively pricing themselves out of the industry.

Bob Dick, a senior policy analyst at the Commonwealth Foundation for Public Policy Alternatives, spoke out about the tax hike. He told FOX43 that: “This tax unfairly targeted one industry to the point of near extinction. We’ve already seen approximately 50 vape shops close their doors because of this tax, and more will follow unless it is repealed.”

Fortunately, some lawmakers agree that the 40 percent retroactive tax is too high. The amended legislation, known as HB 2342, replaces that tax with a five-cents-per-milliliter tax, a much more feasible way of driving revenue up without driving shops out of business.

It should be noted that the 40 percent retroactive tax that the governor signed into law was only supposed to be responsible for two percent, or $13 million, of the $650 million package. This would only be true if all of the current vape shops in the state could afford to pay the tax. But with so many shops closing, it is evident that the current tax plan for vape shops will fail miserably.

Pennsylvania vape shops aren’t in the clear just yet, however; as Dick pointed out in his interview with the news channel, the bill must pass the House and the Senate and be signed into law by the Governor before any changes will be made.

For now, however, vape shops are doing the best they can prior to the inventory count in the beginning of October. Some shops are still considering closing, leading many to wonder just what a fair tax on vaping would be.

We will continue to bring you the latest news on this and other related vaping legislation as it progresses.

Jimmy, lover, blogger, vaper and ex-smoker. I’ve been blogging about and supporting Vaping since 2009. They changed my life and I think history will show them as one of the most significant public health invention of the 21st century.

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