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 modify the sale of electric cigarettes. While vaporizers have been around for a long 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 trying to defeat state taxing and regulation efforts. Now, they’re making their next move: challenging the legality of the taxation themselves. In a fresh legal filing, they’re claiming that the FDA over regulates and creates a “guaranteed” interstate transportation business. The filing happens to be being contested in the courts, and both sides expect an answer sooner or later soon.
State taxation uprights vaporizers by regulating their sale. It is 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, and as a consequence, their cigarette tax rates may also be growing rapidly. Several same states likewise have placed taxes on cigar and pipe tobacco. It seems that smoking just Vape Shop gets more expensive, 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 is doing everything they can to fight 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 left the door spacious to regulation of vaporizer devices. The FDA claims that over-regulation defeats the purpose of regulating and controlling the usage of vaporizers.
The truth is that the FDA itself is not even required to regulate or control these industries. Only state governments have that authority. It’s the state governments that impose their own taxes, and many states have imposed increased taxes in an effort to try to curb smoking. But 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 merchandise at a higher rate compared to the authorities does.
Also, the FDA itself is not directly involved in the manufacturing of the vaporizer. Tobacco companies manufacture their 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 when 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 benefit of having a federal regulator, or a manufacturer that is licensed by hawaii. 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 trying to tell the FDA to target Vaping online users rather than tobacco manufacturers? The FDA knows that regulating weight loss supplements isn’t likely to work because there are no controlled weight loss supplements currently on the market. And, even if there have been, they couldn’t force food manufacturers to market diet pills containing things that are banned by state law.
So, instead, the states want to force the FDA to come up with some type of rule or regulation which will require a manufacturer to market their devices in a particular manner, in accordance with state regulations. Which makes no sense at all. In addition, it flies when confronted with the original purpose of the meals Drug and Administration Act. Why the FDA is targeting these devices is a question that only experts in the FDA can answer.