If you haven’t heard of the upcoming vape tax in Pennsylvania, I did a post about it not too long ago. This link will bring you to that post if ever you want to read more about it.
Pennsylvania’s new vape tax
If you were a business owner, how do you think a 40% tax on every product you sold would affect your place of business?
A lot of vape shop owners are preparing for the worst as the date for the new Pennsylvania vape tax comes closer.
There are people who are still fighting this new tax to be implemented on October 1st, 2016. Vape shop owners, many of them sole proprietorship, say this new tax is designed to put them out of business.
Aside from the insanely high new tax placed on products, shop owners also have to pay a “floor tax” which is a 40% tax on all inventory they currently have in stock.
This has forced many owners in Pennsylvania to start selling their products at very low prices, just to finish off their stock.
Unless there is some type of resolution done to this new tax, many local vape shop owners don’t see a future in doing vape based business here and are ready to close down.
If this happens, people will lose their jobs and the forecast revenue from this new tax will not be met leading to more financial problems for the state.
How they are fighting the new tax
There is a gleam of hope which might change the outcome of all of this.
One proposal wants to eliminate the floor tax completely and replace it with a ¢5 tax for every milliliter of e-liquid sold. This definitely sounds like a better alternative to the original floor tax.
Another proposal proposes to delay the payment for the floor tax for 90 days.
Finally there is a third proposal which calls to exclude electronic cigarettes from taxation.
Is this new tax really worth the consequences?
Is it really worth all the trouble? What will happen when all these shops decide to close down? How will this affect the business owners and the employees who will lose their livelihood?
The people in this area who want to try vaping will have no where to go if these shops are no longer in business. Smokers will have harder access to vaping products.
Hopefully a better solution for both the state and vape shop owners comes very soon.