Bill that Taxes Vaping Products Passes House

A bill that would raise almost $50 million in new revenue over the next two fiscal years through a new wholesale tax on vaping products and increased taxes on some other tobacco products has cleared the Kentucky House.

A portion of the funding under HB 32 would come from adding vaping products to the list of tobacco products subject to a state tobacco excise tax of 25 percent of the wholesale price.   Most remaining revenue would come from doubling the excise tax rate per unit and weight on snuff and chewing tobacco.

Traditional cigarettes would not be subject to a tax increase under the bill.

The legislation came to a vote in the House several weeks after the federal government raised the minimum age to buy cigarettes and vaping products to 21.

Testimony on the bill earlier this month suggests that HB 32 will reduce use of e-cigarettes and other vaping devices–most of which have been shown to carry nicotine-among youth.

HB 32 now advances to the Senate for consideration.

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