NEWS
Protest signs: Fat Cat Vapor Shop
“ The 40% tax is
economic terrorism,”
and “Only PA would
try to balance a
budget by bankrupting
small businesses.”
tax on hundreds of small mom and pop
businesses in PA. The law also requires
them to take an inventory on Oct 1st, and
write a check to the state for 40% of the
wholesale value of their entire inventory
at that time.
“Most shops, mine included, could never
hope to do that, so I will be closing in
mid September.”
Chris then put signs in his shop windows
protesting about the law which has sent
him and other vape store owners out of
business. Amongst the signs were ones
which read: “The 40% tax is economic
terrorism,” and “Only PA would try to
balance a budget by bankrupting
small businesses.”
Chris is not alone in having to close his
doors because of the tax. Comments on
his store’s Facebook page tell of other
business owners who have also had to
shut up shop because they could not
afford to pay the tax.
Vaper Darren Gallant wrote: “I stopped at
another vape shop in Wellsboro today at
lunch break and they are having a going
out of business sale. I was told 7 more
shops he knew of were closing as well.”
As Vapouround Magazine was going
to press a massive rally was being
organised for Monday September
26 to be held on the Capital Steps at
Harrisburg, PA.
12 VAPOUROUND MAGAZINE USA
The Harrisburg Capital Rally has
been timed to coincide with the
State Senate going back into
session and protestors have been
asked to conduct themselves “in a
professional, calm, and civil manner
while in the march and on
the steps.”
Pennsylvania has now become
the sixth state to impose a vape
products tax and joins Kansas,
Louisiana, Minnesota, North
Carolina and West Virginia in doing
so. Many other states are also
considering imposing similar taxes.
The Pennsylvania tax, as well as
being prohibitively high also carries very
tough penalties indeed. Evading the tax
is a felony for which courts can impose
fines of up to $5,000, jail terms of up to
five years or both.
The fines and jail terms apply for both
selling any tobacco product for which the
proper tax has not been paid and also for
possessing any untaxed
tobacco product.
The provisions are contained in the
General Assembly of Pennsylvania
House Bill 1198 and imposes a 40% tax
on the purchase price paid by retailers
to manufacturers or dealers who supply
their products. In addition retailers may
only purchase tobacco products from
licensed dealers.
Manufacturers, distributors, and retailers
who want to do business in PA must
first obtain licenses from the state and
retailers can only buy vaping products
and e-liquids from licensed distributors
or wholesalers.
Vapers who buy vaping products for
which the tax has not been paid, such
as those buying online or from out-ofstate suppliers, are termed ‘unclassified
importers’ for the purposes of the
new law.
Should they bring an untaxed vaping
product or e-liquid into PA then they will
have to pay a tax of 40% of the purchase
price. They will be required to file reports
and make payments monthly or face
hefty fines or jail terms for non-payment.
The ‘floor tax’ provision, which is the
main aspect of the law which many
store owners say is forcing them out of
business, comes into effect on October 1
with store owners having just 90 days to
make the payment.
The vaping tax is part of a package of
measured designed to bring in $1.3
billion revenue and also increases the
tax on cigarettes from $1.60 to $2.60 per
pack and imposes a 55-cents-per-ounce
tax on roll-your-own tobacco.
The state sales tax will be extended to
the download of digital videos, books,
games, music, and applications.