Hawaii Considers Taxing E-Cigarettes

One bill would add a whopping 85% wholesale tax on electronic cigarette devices.

February 12, 2014

HONOLULU – Two bills before Hawaii lawmakers would tax electronic cigarettes, the Centre Daily reports. One measure would tack on a 85% wholesale tax on electronic cigarette devices. “We have to find a balance between public health and cessation advantage in this particular product,” said Sen. Josh Green, who chairs the Health Committee.

Opponents of SB2495 and SB2496 claim that e-cigs are smoking cessation aids and that high taxes would drive e-cigarette shops out of business. “I understand the tax, but not an 85% tax,” said Tony Muller, owner of the Vaping Section Hawaii. “That's going to drive people away from quitting smoking.”

The measures have to clear a second committee before the full Senate would vote on them. Some senators have expressed their belief that neither bill will be approved.

Meanwhile, state legislators will also vote on banning the sale of flavored tobacco products, including e-cig cartridges. Retailers selling electronic cigarettes oppose this bill as well because not having flavored e-cig cartridges would make the devices less appealing to adult smokers. Lawmakers said the bill is aimed at stopping children from smoking.

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