Vapor products; establishing state and local taxes. (HB627)

Introduced By

Del. Paul Krizek (D-Alexandria) with support from co-patron Sen. Scott Surovell (D-Mount Vernon)

Description

Vapor products taxes. Creates a state tax on vapor products, including a vapor cartridge or other container of nicotine in a solution or other form that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device. The bill authorizes cities and towns and certain counties to impose a tax on vapor products. The state tax would be imposed at a rate of 15 percent of the manufacturer's sales price of the vapor product. All revenues from the state tax on vapor products would be deposited into the Virginia Health Care Fund, into which all revenues from the state tax on cigarettes are currently deposited. Counties, cities, and towns that are currently authorized to tax cigarettes would also be authorized to tax vapor products, with the tax imposed as a percentage of the manufacturer's sales price of the product. The bill authorizes Arlington and Fairfax Counties to impose a vapor products tax, but at a rate that does not exceed the state tax on vapor products created under the bill. Under current law, Arlington and Fairfax Counties may impose a tax on cigarettes at a rate that does not exceed the state cigarette tax. The bill has a delayed effective date of January 1, 2017. Read the Bill »

Outcome

History