E-Cigarette Tax Bill Clears House Panel

Ways and Means Committee approves legislation to tax vaping products like other tobacco products.

October 24, 2019

WASHINGTON, D.C.—The House Ways and Means Committee Wednesday approved H.R. 4742, a bill that seeks to tax e-cigarettes and other vaping products like traditional cigarettes. Approved by a 24–15 vote, the measure now advances to the full House for consideration.

As reported in NACS Daily, the bill, introduced in the House by Reps. Tom Suozzi (D-N.Y.) and Peter King (R-N.Y.) in October, would tax e-cigarettes and vaping products for the first time at the federal level. Already, 19 states and the District of Columbia have added their own taxes on e-cigarettes.

The bill would place an excise tax equal to the $1.01 federal levy per pack of cigarettes on tobacco alternatives. The Joint Committee on Taxation estimates that the bill would raise nearly $10 billion over a decade.

“Increasing the cost of vaping will have a direct correlation to decreasing the usage of vaping products,” Rep. Suozzi said in a statement.

Although sponsored by members from both sides of the aisle, the bill advanced largely on a partisan basis. It is unclear if the legislation will be considered as a standalone measure or if it will be joined with additional e-cigarette bills before it is considered on the House floor.