Vaping products to be taxed at rate comparable to cigarettes
A tax parity law was passed by the state Legislature that would match the tax rate of vaping products to the current rates for combustible cigarettes.
Senate Bill 975 would establish a 70% wholesale tax on all vape products, if approved by Gov. Josh Green.
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The increase would make the tax rate one of the highest in the country for vape products.
The bill also bans the sale of vape products to consumers by out-of-state retailers, which virtually eliminates online sales from companies outside of Hawaii.
If signed into law, the bill would take effect Jan. 1, 2024.
A separate bill that attempted to ban the sale of all flavored tobacco products did not make it through the Legislature this session, nor did an attempt at a generational ban on tobacco sales.
