Kentucky House Passes Tax Bill on Vaping Products

On February 28, news reports indicated that the Kentucky House of Representatives passed a bill on Wednesday that will impose taxes on vaping products and increase taxes on snuff and chewing tobacco.

House Bill 32 is expected to raise $50 million over the next two years, aiming to curb smoking and smokeless tobacco use in one of the states with the highest cancer rates in the country, while also generating much-needed revenue for cash-strapped individuals.

The bill passed with a vote of 75-17 and is now headed to the Senate.

Representative Jerry Miller, R-Louisville, stated that the goal of the bill is to make the prices of products that may be harmful to health higher for consumers.

Miller said, "We know that for brains under 26, they are still developing, and nicotine only stimulates addiction and other issues. We have seen some kids become addicted to the point where they have to give up athletics because it affects their bodies."

The tax bill will raise the wholesale tax on other tobacco products from 15% to 20% and impose this tax on vaping products.

Vaping in Kentucky has faced legislative delays, claiming that its products are designed to help people quit smoking.

Governor Andy Beshear proposed taxing vaping and tobacco products to help balance last month's proposed budget, but Miller's bill differs from the governor's proposal in several ways. Beshear suggested raising the tax on cigarettes by 10 cents per pack and imposing a tax on e-liquids.

He stated that the governor's proposal would tax vaping products by volume, which he said is the way companies like JUUL want to be taxed.

The bill only allows stores licensed by the Kentucky Alcoholic Beverage Control to sell flavored vaping products or vaping products with nicotine content above 5.1%.

Miller mentioned that some businesses will be transferred to licensed vaping stores, so if they obtain a $200 license, they may attract more customers.