Hawaii Debates Taxing Electronic Cigarettes

Lawmakers also consider nixing the state requirement to mix E10 blends.

February 10, 2012

HONOLULU - The Hawaii Legislature is considering a measure banning the sale of electronic cigarettes to minors and imposing the state??s 70% tobacco tax on the smokeless devices, the Hawaii Reporter reports. More than 1,000 opponents of the tax came out in force yesterday during the bill??s debate.

"There is very little known about the long term health effects of the use of e-cigarettes or the vapors given off. Recent studies have shown that within one liquid nicotine cartridge there is enough nicotine to cause serious illness or even death," said Loretta Fuddy, director of the Hawaii Department of Health, to the Senate Ways and Means Committee.

However, Cory Smith, president of Volcano Fine Electronic Cigarettes, countered that the product does not contain tobacco. "Since the research thus far indicates that e-cigarettes show promise as a means to deter tobacco use and thereby reduce the cost of tobacco-related harms, it makes no sense to subject e-cigarettes to the tobacco tax," he said, adding that a 70% tax on e-cigs would run him out of business.

Meanwhile, the state House has proposed a bill that would eliminate the requirement to blend E10 fuel as a way to stem the rise of gasoline prices. Hawaii has experienced a bump of 41 cents a gallon compared to this time in 2011.

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