E-Cigarette and Vaping Taxes

Ohio Should Wean Off Cigarette Tax Revenue and Pursue Healthier Fiscal Policy

Instead of doubling down on a shrinking tax base, Ohio lawmakers should instead look towards tax solutions that secure the state’s long-term fiscal health.

Opportunities to Reform the Food and Drug Administration’s Center for Tobacco Products

New leadership at the FDA will have the opportunity to revisit decisions that have shifted consumption to illicit products and discouraged harm reduction—policies that, however well intended, have come at a significant cost in lives.

The Future of EU Tobacco Taxation: Insights from Member States and Best Practices for the Next Tobacco Excise Tax Directive

An update to the EU’s Excise Tax Directive that embraces harm reduction principles would save lives and provide a steady stream of revenue to support public health expenditures.

FDA’s Proposed Cigarette Prohibition Would Cost $33 Billion in Annual Tax Revenue

The US already has massive problems with cigarette smuggling. A cigarette prohibition would be devastating to tax coffers while pushing smokers toward what could become the world’s largest illicit market.

Cigarette Smuggling Cost States Nearly $5 Billion in Forgone Excise Tax Revenue Each Year

Tax avoidance is a natural consequence of tax policy. Policymakers should consider the unintended consequences, both to public health and public coffers, of the excise taxes and regulatory regimes for cigarettes and other nicotine products.

Cigarette Taxes and Cigarette Smuggling by State, 2022

Growing cigarette tax levels and differentials have made cigarette smuggling both a national problem and a lucrative criminal enterprise.

Current Challenges in Vaping Markets

As much as 98 percent of vaping products sold in the US are illicit. Most states levy an excise tax on vaping products, but these tax systems vary substantially. The result is a messy tax system covering largely illicit products, and no one knows whether taxes are being collected and remitted on most products sold nationwide.

Vaping Taxes by State, 2024

The vaping industry has grown rapidly in recent decades, becoming a well-established product category and a viable alternative to cigarettes for those trying to quit smoking. US states levy a variety of tax structures on vaping products.

Michigan Tobacco Bills Could Reduce Revenue and Increase Smuggling

Two pieces of tobacco legislation in Michigan have the potential to decrease state tax collections by $320 million per year, deter smokers from switching to less harmful products, and increase illicit trade and crime.

Prohibition by Price

Step into the shadows of illicit trade where taxation, incentives, and criminal networks intersect to fuel the lucrative cigarette smuggling market.

Vaping Taxes by State, 2023

If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.

How Should Alternative Tobacco Products Be Taxed?

The potential for alternative tobacco products to save lives is clear and well established. The framework described in this paper uses a scientific approach to tax strategy that will both reduce harm and create a reliable revenue stream for public expenditures.

Taxes and Illicit Trade

Taxation plays a key role in driving illicit trade. People respond to incentives, and sizable price markups for legal cigarettes create incentives for tax avoidance.

State Tax Changes Taking Effect July 1, 2023

At least 32 notable tax policy changes recently took effect across 18 states, including alterations to income taxes, payroll taxes, sales and use taxes, property taxes, and excise taxes. See if your state tax code changed.

The Future of Tobacco Taxation in Europe

Later this week, the European Union is expected to release a new Tobacco Tax Directive, the first update in more than a decade. Early reports indicate that the EU will propose a significant increase to the existing minimum cigarette tax rates levied across the Union and expand the product categories that are taxed, including a block-wide vaping tax.

Externality

Vaping Taxes by State, 2022

If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.

State Tax Changes Taking Effect July 1, 2022

Although the majority of state tax changes take effect at the start of the calendar year, some are implemented at the beginning of the fiscal year. Fourteen states have notable tax changes taking effect on July 1.

Proposal to Raise Vapor Taxes in Washington State Gets Base and Rate Wrong

Lawmakers in Washington need not revisit their vapor tax. The current tax is levied at an appropriate level and it has the right tax base.

Poor Tax Design in Alaska Vapor Tax Proposal

A proposal to introduce a wholesale tax on vapor products in Alaska could make switching from combustible tobacco products very expensive for smokers.