Pa. panel votes to change tax on vapor products

HARRISBURG, Pa. (WHTM) – A Senate committee has approved legislation to change the way Pennsylvania taxes e-cigarette products.

Senate Bill 508 was reported out of the Finance Committee on Wednesday by a vote of 9-3.

Sen. Camera Bartolotta (R-Beaver/Greene/Washington) said her proposal would eliminate the 40 percent wholesale tax and replace it with a 5-cents per milliliter retail tax on e-liquid. She said it would prevent more vapor shops from going out of business.

“We’ve already seen too many people lose their businesses and livelihoods because of the way this tax was enacted, and many more vapor businesses are teetering on the brink of failure due to the new tax burden,” Bartolotta said in a statement. “The state won’t see any benefit at all from this tax if shops continue to fail.”

The wholesale tax on all vapor products sold in Pennsylvania was created during last year’s budget negotiations.

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