Is State Tax Rates Hiking Up THE PRICE TAG ON Vaporizers?
The U.S. tobacco industry is fighting back against efforts by state regulatory bodies and consumers to regulate the sale of electronic cigarettes. While vaporizers have already been around for quite some time and are becoming more acceptable in mainstream American life, the tobacco companies are determined to fight these efforts vigorously. They’ve made millions of dollars attempting to defeat state taxing and regulation efforts. Now, they’re making their next move: challenging the legality of the taxation themselves. In a new legal filing, they’re claiming that the FDA over regulates and creates a “guaranteed” interstate transportation business. The filing is currently 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, so when a result, their cigarette tax rates may also be growing rapidly. Several same states likewise have placed taxes on cigar and pipe tobacco. It appears that smoking just gets more costly, and that is what the tobacco industry is shooting for.
In line with the filing with the FDA, the tobacco industry has been targeted unfairly. The tobacco industry does 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 over-regulation of cigarettes. These rulings have gone the door wide open to regulation of vaporizer devices. The FDA claims that over-regulation defeats the objective of regulating and controlling the use of vaporizers.
The fact is that the FDA itself isn’t even required to regulate or control these industries. Only state governments have that authority. It is the state governments that impose their own taxes, and several states have imposed increased taxes in an effort to try to curb smoking. However the state governments are themselves at a disadvantage. They can not regulate wholesale prices since these prices are regulated by state laws. They also can’t tax the product at a higher rate than the federal government does.
Also, the FDA itself is not directly mixed up in manufacturing of the vaporizer. Tobacco companies manufacture their very own products, and they are those that get sued by the states and levied taxes. The FDA merely approves or denies manufacturer licenses based on whether these manufacturers follow federal law. And if the manufacturer doesn’t, then your company doesn’t get its license.
So, the states that do impose taxes on vaporizer devices don’t get the advantage of having Element Vape a federal regulator, or a manufacturer that is licensed by the state. So, instead, they find ways 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, dietary supplements and cosmetics. It has the capacity to ban the production or sale of any chemical or substance that it determines is unsafe. So, why are states attempting to tell the FDA to target Vaping online users rather than tobacco manufacturers? The FDA knows that regulating weight loss supplements isn’t going to work because you can find no controlled weight loss supplements currently available to buy. And, even if there were, they couldn’t force food manufacturers to market diet pills containing ingredients that are banned by state law.
So, instead, the states are trying to force the FDA to create some type of rule or regulation that may require a manufacturer to sell their devices in a particular manner, according to state regulations. Which makes no sense at all. In addition, it flies in the face of 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.