Other Tobacco Products Tax

The tax rate for e-cigarettes is 40 percent of the purchase price from the wholesaler on the following:

• Electronic cigarettes — defined as an electronic oral device, such as one composed of a heating element and battery, electronic circuit or both. An electronic cigarette provides a vapor of nicotine or any other substance, and the use or inhalation of an electronic cigarette simulates smoking. Electronic cigarettes are subject to be taxable regardless of whether the devices are manufactured, distributed, marketed or sold as an e-cigarette, e-cigar, e-pipe or under any other product, name or description. These devices are taxable when sold with or without the liquid or substance.
• Any liquid or substance sold for use in an electronic cigarette, regardless of whether the liquid or substance contains nicotine.
• E-cigarette devices sold in complete kits that include any liquid or substance for use in the electronic cigarette, regardless of whether the liquid or substance contains nicotine.

Example: If the retailer purchased e-cigarette liquid for $10, the retailer would pay tax of $4.

The tax is 55 cents ($0.55) per ounce, with a minimum tax per package of 66 cents ($0.66). For example, if the retailer purchases 100 ounces of tobacco in two-ounce packages, the tax due would be $55. If the same quantity is purchased in one-ounce packages, the tax due would be $66.