INDIANAPOLIS (WPTA21) — State lawmakers are looking into taxing e-cigarettes for the first time.
One in five Hoosiers smokes, and studies show e-cigarettes are getting more and more popular. The CDC reports 6 percent of adults 18 and older in Indiana currently use e-cigarettes every day or some days.
While there is a $1 per pack tax on cigarettes, there are no taxes for e-liquids containing nicotine. This would change under a proposed bill in the Indiana legislature.
House Bill 1444 would tax vaping based on the amount of e-liquid. The bill would impose a tax on e-liquids that contain nicotine by a rate of $.08 per milliliter of consumable product.
If passed, Indiana would join eight states and the District of Columbia with an excise tax on vapor products. However, the Indiana Business Journal reports the proposed rate would be the highest among the states currently taxing by the unit.
A fiscal note by the legislative services agency says it is estimated that e-cigarette users may consume roughly 170 to 300 milliliters on average per year. Under the proposed tax, this would generate $13.6 to $24 per user per year. With the CDC estimate, the tax would generate $4,156,228 to $7,334,520 per year for the general fund.