Maryland Plans to Raise Wholesale Tax Rate on E-cigarettes to 60%

Montgomery County in Maryland is considering doubling the current wholesale tax rate on e-cigarettes to 60%.

If approved, the new tax rate will take effect on July 1. The current 30% tax rate was approved in 2015.

Montgomery County Council Chairman Tom Hucker stated: "We are the public health leaders in Montgomery County, and reportedly, the new tax rate will be the highest in the U.S. for vaping products. I am pleased that our policy can serve as a model for other counties. This plan has successfully increased revenue for public health programs, offsetting taxpayer costs associated with e-cigarette and tobacco use."

However, at the public hearing on the tax, Bruce Bereano, a representative of the Maryland Tobacco and Candy Distributors Association, stated that only Maryland has the legal authority to tax tobacco products.