California Vape Tax Increases

California will be passing an additional tax on vapor products this year due in part to the serious strains on its budget. In January, Governor Newsom’s executive budget proposed adding a new tax to vaping products and creating a stamp program similar to that for combustible cigarettes. In addition to the existing heavy wholesale tax, the Governor proposed adding an additional $2 per 40 milligrams of nicotine. He released a revised budget this week that also included the tax.
 
Assemblyman Adam Gray, Chairman of the Governmental Organization Committee, offered amendments to his vaping regulation bill, AB 1639, that was introduced last year. Unfortunately, he has proposed a $2.40 per 40 milligrams of nicotine in an effort to outdo Governor Newsom. Many vape groups are aggressively opposing both tax measures and are working with legislators to stop the draconian tax being proposed and replace it with a more equitable tax that levels the playing field.

Hearings on these measures are likely to start within the next two weeks. Send a quick note to your local representative and express your concerns over further vape taxes.