Indiana e-cigarette tax dies on last day of legislature

Apr 29, 2019

ISFA worked with other industry stakeholders to ensure unfair taxes against vapor products did not come to Indiana this session.

A measure that would have taxed e-cigarettes in Indiana for the first time died without a vote on the last day of the legislative session.

At one point, Republicans wanted to pass a 20 percent excise tax on vaping, but by the end of the day Wednesday had lowered that suggestion to 5 percent.

But the bill’s champions, Rep. Tim Brown, R-Crawfordsville, and Sen. Ed Charbonneau, R-Valparaiso, said they couldn’t muster support in their caucuses for even that amount.

By the time the proposal dropped so low, in fact, some lawmakers thought it was too little be effective, too low to bother with.

Brown said vaping’s a problem and he hopes the legislature can one day find a solution. He’s seeing an increase in teenage vaping, which he said is leading to an increase in long-term smokers.

Read the entire story on the Indy Star here: https://www.indystar.com/story/news/politics/2019/04/25/indiana-lawmakers-decline-tax-e-cigarettes-vaping/3568839002/

Unfair advantage

Proposed tax on vaping liquids hits small manufacturers hardest. Less than four years ago, Indiana lawmakers passed a bill that gave a select few businesses the right to manufacture e-liquid in the state. Working in the shadows of the night, lobbyists pushed to protect very large businesses from the competition of vape shops and small manufacturers, the very sort of competition that has recently eaten into the profits and stock prices of America’s largest tobacco companies.

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