Is State Tax Rates Hiking Up The Price Of Vaporizers?
The U.S. tobacco industry is fighting back against efforts by state regulatory bodies and consumers to modify the sale of electric cigarettes. While vaporizers have already been around for quite some time and so are becoming more acceptable in mainstream American life, the tobacco companies are determined to fight these efforts vigorously. They’ve made huge amount of money attempting to defeat state taxing and regulation efforts. Now, they’re making their next move: challenging the legality of the taxation themselves. In a fresh legal filing, they’re claiming that the FDA over regulates and creates a “guaranteed” interstate transportation business. The filing happens to be being contested in the courts, and both sides expect an answer sooner or later soon.
State taxation uprights vaporizers by regulating their sale. It’s estimated that about twenty states have uprights to sell vaporizer devices, including California, Colorado, D.C., Florida, Hawaii, Illinois, Maryland, Massachusetts, Montana, Nevada, New Hampshire, Oregon, Pennsylvania, and Washington. These states have grown rapidly in recent years, and as a result, their cigarette tax rates are also growing rapidly. A number of these same states also have placed taxes on cigar and pipe tobacco. It seems that smoking just gets more costly, and that’s what the tobacco industry is shooting for.
In line with the filing with the FDA, the tobacco industry is being targeted unfairly. The tobacco industry is doing everything they can to fight against regulation of vaporizer devices. As we’ve seen, the U.S. Supreme Court has multiple times ruled against the FDA Disposable Vape over-regulation of cigarettes. These rulings have left the door spacious to regulation of vaporizer devices. The FDA claims that this over-regulation defeats the objective of regulating and controlling the usage of vaporizers.
The fact is that the FDA itself is not even required to regulate or control these industries. Only state governments have that authority. It’s the state governments that impose their very own taxes, and many states have imposed increased taxes in order to try to curb smoking. But the state governments are themselves at a disadvantage. They cannot regulate wholesale prices since these prices are regulated by state laws. In addition they can’t tax the product at a higher rate compared to the authorities does.
Also, the FDA itself is not directly mixed up in manufacturing of the vaporizer. Tobacco companies manufacture their own products, and they are the ones that get sued by the states and levied taxes. The FDA merely approves or denies manufacturer licenses based upon whether these manufacturers follow federal law. And when the manufacturer doesn’t, then your company doesn’t get its license.
So, the states that do impose taxes on vaporizer devices do not get the advantage of having a federal regulator, or a manufacturer that is licensed by the state. So, instead, they find methods to increase taxes on the manufactures themselves! Which makes no sense. Why are these manufacturers being targeted specifically? There’s no real reason.
The Food and Drug Administration may be the federal body in charge of regulating pharmaceuticals, health supplements and cosmetics. It gets the power to ban the production or sale of any chemical or substance that it determines is unsafe. So, why are states trying to tell the FDA to target Vaping online users rather than tobacco manufacturers? The FDA knows that regulating diet pills isn’t going to work because you can find no controlled weight loss supplements currently in the marketplace. And, even if there have been, they couldn’t force food manufacturers to sell diet pills containing ingredients that are banned by state law.
So, instead, the states are trying to force the FDA to create some kind of rule or regulation which will require a manufacturer to market their devices in a particular manner, according to state regulations. Which makes no sense at all. It also flies when confronted with the original purpose of the Food Drug and Administration Act. Why the FDA is targeting the unit is really a question that only experts in the FDA can answer.