HARRISBURG, Pa. (WHTM) – A House committee has reported out legislation to change the 40 percent wholesale tax on electronic cigarettes and vapor products.
House Bill 2342 would replace the tax with a 5-cent-per-milliliter retail tax on the vapor liquid only.
The vote in the House Finance Committee was 18-4.
The bill’s author, Rep. Jeff C. Wheeland (R-Lycoming), said his measure would help more than 350 small businesses that sell vapor products in Pennsylvania.
“Many vapor business owners have already closed their doors because of this punitive tax and more are saying they will follow suit,” Wheeland said in a statement. “My legislation is modeled after laws implemented in Louisiana and North Carolina. It would still generate tax revenue but not cause these small businesses to close, resulting in a loss of jobs.”
The bill goes to the full House for consideration.