Kentucky: State House passes bill to create tax on vaping products (25%, same as cigarettes

[The Cromwell]

And from what I can gather from it a tax is required on existing stock not just as you sell stuff.
(b) File a return with the department on or before August 10, 2020, showing 18 the entire inventory, by category, of tobacco products possessed by them or 19 in their control at 11:59 p.m. on July 31, 2020; and

4. Twenty-five percent (25%) of the actual amount paid for each category 14 of tobacco products, including vapor products, for which no tax had 15 been assessed or paid prior to August 1, 2020.


Both houses of the KY state legislature are Republican controlled.

https://apps.legislature.ky.gov/recorddocuments/bill/20RS/hb32/bill.pdf

 

[Rhianne]

And from what I can gather from it a tax is required on existing stock not just as you sell stuff.
(b) File a return with the department on or before August 10, 2020, showing 18 the entire inventory, by category, of tobacco products possessed by them or 19 in their control at 11:59 p.m. on July 31, 2020; and

4. Twenty-five percent (25%) of the actual amount paid for each category 14 of tobacco products, including vapor products, for which no tax had 15 been assessed or paid prior to August 1, 2020.


Both houses of the KY state legislature are Republican controlled.

https://apps.legislature.ky.gov/recorddocuments/bill/20RS/hb32/bill.pdf

Are you in KY, Crom?

 

[The Cromwell]

Are you in KY, Crom?

Part of me is.

 

[Jinx'd]

Part of me is.

 

[Rhianne]

Part of me is.

But which part? Your physical vehicle for this incarnation?

Crom, you’re a very interesting person, btw.

 

[The Cromwell]

But which part? Your physical vehicle for this incarnation?

Crom, you’re a very interesting person, btw.

You guessed it! Winnner, winner chicken dinner!!!

I am really very boring though and like it that way.

 

[eSMOKA]

I wonder, is KY's tax on everything or only on eliquid? My guess si hat at only 25%, it might be a tax on everything.

I ask because I just found out recently that when PA implemented it's 40% vapor tax, they implemented a floor tax (meaning you had to pay tax on all inventory in the store/warehouse that you had on a specific date. A Floor Tax is common practice when states implement their vapor taxes, just happened in NV I believe).

But what happened was that the state revenue department made a "mistake" and demanded taxes be paid on ALL inventory. When in fact, the tax law was written such that only eliquid and full starter kits were taxable under the vapor tax.

So when the floor tax hit, many retailers just shut their doors. They could not afford a 40% floor tax.

But one retailer and one wholesaler took them to court and they won. And the revenue department ended up owing money back to those that paid taxes on inventory that was not taxable.

But the sad part is that it took 2 years to win this battle and by then all these retailers were already out of business.

The PA govt and revenue department fucked up big time and is liable for putting businesses out of business for no good reason. What a great yet sad story at the same time.

You can read more about it here...
https://kingdomvapor.com/kingdom-va...r-decision-kingdom-vapor-emerges-victorious-/

https://www.fox43.com/article/news/...case/521-07589128-718a-4ff5-aba0-314c1882a40d

https://www.tuckerlaw.com/2019/04/23/9708/

 

[Rhianne]

I wonder, is KY's tax on everything or only on eliquid? My guess si hat at only 25%, it might be a tax on everything.

I ask because I just found out recently that when PA implemented it's 40% vapor tax, they implemented a floor tax (meaning you had to pay tax on all inventory in the store/warehouse that you had on a specific date. A Floor Tax is common practice when states implement their vapor taxes, just happened in NV I believe).

But what happened was that the state revenue department made a "mistake" and demanded taxes be paid on ALL inventory. When in fact, the tax law was written such that only eliquid and full starter kits were taxable under the vapor tax.

So when the floor tax hit, many retailers just shut their doors. They could not afford a 40% floor tax.

But one retailer and one wholesaler took them to court and they won. And the revenue department ended up owing money back to those that paid taxes on inventory that was not taxable.

But the sad part is that it took 2 years to win this battle and by then all these retailers were already out of business.

The PA govt and revenue department fucked up big time and is liable for putting businesses out of business for no good reason. What a great yet sad story at the same time.

You can read more about it here...
https://kingdomvapor.com/kingdom-va...r-decision-kingdom-vapor-emerges-victorious-/

https://www.fox43.com/article/news/...case/521-07589128-718a-4ff5-aba0-314c1882a40d

https://www.tuckerlaw.com/2019/04/23/9708/

It is a great story. I’m just hoping everyone getting taxed out of business is not going to be the norm. But what better way to crush vaping, and make money off the sellers and buyers. Depressing.

 

[The Cromwell]

i think the KY tax is on everything vaping but not absolutely certain.

 

[Rhianne]

i think the KY tax is on everything vaping but not absolutely certain.

So if Deeming doesn’t crush us, the taxes might.

 

[The Cromwell]

So if Deeming doesn’t crush us, the taxes might.

Taxes may seriously dent vaping. However the deeming regs as they stand will pretty much drive it into the dirt.