New Vaping Tax Policy to Take Effect in October, Raising Retail Costs

 A 40% wholesale tax on vape products was approved in this year’s budget and is expected to generate nearly $13 million. The tax will take effect on October 1, requiring all vape shop owners to pay a 40% tax on their inventory.   “ I have $100,000 in inventory. I have to write a $40,000 check. No one here can afford that,” said shop owner Lloyd Hewitt.   In anticipation of the tax, state figures show that more than 50 shops have already closed, and more than 100 people have lost their jobs. Opponents of the tax gathered at the Capitol on Monday. They said this is not just a vaping issue, but an economic issue.   They are urgently calling for a compromise and hope HB 2342 will pass, which would repeal the excise tax and create a $0.05-per-milliliter tax instead. The bill is sponsored by Republican Representative Jeff Wheeland.   “The government can regulate businesses out of operation or tax them out of operation. What do we have here today? Both,” Wheeland said.   The legislature is meeting throughout the week, and the bill could be discussed.