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"The Senate Revenue and Economic Development Committee considered Senate Bill 79, requested by the Department of Taxation. The bill would tax e-cigarettes and liquid nicotine products at a rate of 30 percent of the wholesale price, the same as other tobacco products like cigars and chew.
But committee members questioned the appropriateness of taxing liquid nicotine and debated whether the state should tax products that might help people quit smoking.
“Everything I’ve read and heard, theses vapors are safer than cigarettes,” said Sen. Michael Roberson, R-Henderson, and chairman of the committee. If that’s so, “Why would be discourage the safer alternative by taxing?” he asked.
Blake Doerr, chief deputy at the Department of Taxation, said the public health policy was for another agency to consider. From that tax perspective, it’s about revenue.
“The underlying policy on taxing tobacco was to generate revenue,” Doerr said.
No action was taken by the committee, and Roberson said it’s unlikely it will proceed."
http://www.reviewjournal.com/taxes/...te-whether-e-cigs-should-be-taxed-cigars-chew