Maryland May Raise the Wholesale Vape Tax Rate to 60%

Montgomery County, Maryland is considering doubling its current wholesale tax rate on vape products to 60%.

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

Montgomery County Council President Tom Hucker said: “We are a public health leader in Montgomery County, and reportedly this new rate would also be the highest tax rate on vaping products in the United States. I am pleased that our policy can serve as a model for other counties. The plan has been successful in generating revenue for public health programs, helping offset taxpayer costs associated with vaping and tobacco use.”

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