A bill that would raise almost $50 million in new revenue over the
next two fiscal years through a new wholesale tax on vaping products and
increased taxes on some other tobacco products has cleared the Kentucky House.
A portion of the funding under HB 32 would come from adding vaping
products to the list of tobacco products subject to a state tobacco excise tax
of 25 percent of the wholesale price. Most remaining revenue would
come from doubling the excise tax rate per unit and weight on snuff and chewing
tobacco.
Traditional cigarettes would not be subject to a tax increase
under the bill.
The legislation came to a vote in the House several weeks after
the federal government raised the minimum age to buy cigarettes and vaping
products to 21.
Testimony on the bill earlier this month suggests that HB 32 will
reduce use of e-cigarettes and other vaping devices–most of which have been
shown to carry nicotine-among youth.
HB 32 now advances to the Senate for consideration.