Is State Tax Rates Hiking Up The Price Of Vaporizers?
The U.S. tobacco industry is fighting back against efforts by state regulatory bodies and consumers to regulate the sale of electric cigarettes. While vaporizers have 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 huge amount of money attempting to defeat state taxing and regulation efforts. Now, they’re making their next Vape Shop 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 is currently being contested in the courts, and both sides expect an answer at some point soon.
State taxation uprights vaporizers by regulating their sale. It is estimated that about twenty states have uprights to market 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 consequence, their cigarette tax rates are also growing rapidly. Several same states also have placed taxes on cigar and pipe tobacco. It seems that smoking just gets more costly, and that’s what the tobacco industry is shooting for.
Based on the filing with the FDA, the tobacco industry has been targeted unfairly. The tobacco industry is doing 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 spacious to regulation of vaporizer devices. The FDA claims that this over-regulation defeats the objective of regulating and controlling the usage of vaporizers.
The fact is that the FDA itself is not even necessary to regulate or control these industries. Only state governments have that authority. It is the state governments that impose their own taxes, and many states have imposed increased taxes in order to try to curb smoking. However the state governments are themselves at a disadvantage. They cannot regulate wholesale prices since these prices are regulated by state laws. In addition they can’t tax the merchandise at a higher rate than the federal government does.
Also, the FDA itself isn’t directly mixed up in manufacturing of the vaporizer. Tobacco companies manufacture their very own products, and they are the ones 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 the company doesn’t get its license.
So, the states that do impose taxes on vaporizer devices do not get the advantage of having a federal regulator, or perhaps a manufacturer that is licensed by the state. So, instead, they find ways to increase taxes on the manufactures themselves! That makes no sense. Why are these manufacturers being targeted specifically? There is no real reason.
THE MEALS and Drug Administration is the federal body responsible for regulating pharmaceuticals, health supplements and cosmetics. It has the power 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 instead of tobacco manufacturers? The FDA knows that regulating diet pills isn’t likely to work because there are no controlled diet pills currently that you can buy. And, even if there were, they couldn’t force food manufacturers to sell diet pills containing things that are banned by state law.
So, instead, the states are trying to force the FDA to create some kind of rule or regulation which will require a manufacturer to market their devices in a specific manner, in accordance with state regulations. Which makes no sense at all. In addition, it flies in the face of the original purpose of the meals Drug and Administration Act. Why the FDA is targeting these devices is really a question that only experts in the FDA can answer.