On Wednesday, July 13th, 2016, the Pennsylvania legislature chose to protect the state’s cigarette tax revenue stream by voting to pass HB 1198 -- the revenue half of Pennsylvania’s budget -- without removing a disastrous tax on vapor products. HB 1198 (now Act No. 84), Article 12-A requires retailers to pay an outrageous 40% tax on the purchase price of all vapor products -- devices and liquids. Part of implementing this tax includes a 40% floor tax (§1203-A) on any products on the shelves of vapor retailers on October 1st, 2016. This bill also enacts a new 55¢/oz tax on smokeless tobacco. Here are some important dates and points to remember regarding this new tax: This tax is imposed on ALL vapor products, which includes devices, nicotine liquids, and non-nicotine liquids.
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