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House panel approves 20% tax on vape products after amendment to curb youth use
Summary
The House Taxation Committee approved House Bill 910, adding vape products to state excise taxes at a 20% wholesale rate after an amendment reduced an initial 50% proposal. Supporters said the measure aims to reduce youth vaping; opponents warned of harms to small businesses and possible unintended consequences.
A House Taxation Committee majority on Monday approved House Bill 910, drawing a new excise tax on vape products and other nicotine-containing devices after an amendment reduced the rate from 50% of wholesale to 20%.
The bill’s sponsor, Representative Mary Cafaro, said the change is intended to make e‑cigarettes less affordable to teenagers and curb youth initiation. “The goal of this bill is the focus is kids, and the goal is to hopefully lehi kids start and more quit,” Cafaro said.
Nut graf: The committee adopted an amendment proposed during the hearing after retailers and small business owners urged a lower rate. Supporters, including the American Lung Association, said taxation is a proven tool to reduce youth tobacco use. Opponents, including hotel and retail associations and many small vape-shop owners, said a high tax could close small businesses or push users to cheaper, less-regulated sources.
Committee debate and amendment: Cafaro opened by saying youth are most price-sensitive and cited national youth survey data showing high flavored-e-cigarette use. Several vape shop owners and small-business representatives argued for the compromise 20% wholesale rate. Tom Jacobson, representing Montana vape-store owners, told the committee the smaller tax “is a really measured balance compromise.”
Public-health and industry views split the room. Carrie Neeson of the American Lung Association called the bill a “good step in the right direction,” urging some revenue be directed to prevention programs. Philip Morris International counsel Charles Denow opposed the tax, arguing that certain alternatives (nicotine pouches) may help adult smokers and that the FDA has authorized some products as potentially beneficial to adult smokers.
Outcome: The committee approved the bill as amended. The vote on the amended bill was 17 in favor, 4 opposed in committee.
What’s next: The measure moves to the House for further consideration. If enacted, it will levy a 20% wholesale tax on the defined vape products in the amended language; the bill text and amendment set the taxable goods and implementation details.
Ending: Supporters urged using some revenue for prevention and enforcement; opponents warned the tax could reduce legal sales and push demand to illicit sources or back to combustible tobacco if the tax is set too high.
