The E-Cig Industry Strikes Back
No, this has nothing to do with Star Wars. New Jersey Governor Chris Christie and some legislators plan to implement a 75% wholesales tax on electronic cigarettes and related gear. By doing so, the tax on e-cigs will mirror the current tax on traditional cigarettes. Currently, there is no special tax imposed on electronic cigarettes and there should never be a special tax. In response to this special e-cig tax, nearly fifty independent electronic cigarette retailers have banded together to retaliate against the proposed tax. The group now calls themselves the New Jersey Vapor Retailers Coalition and they have hired one of New Jersey State’s largest lobbying firms, MWW, to convince lawmakers that the tax would cripple small businesses. Mr. Christie claims that the tax could bring in thirty-five million dollars a year, but it’s unclear if that would actually happen. Although electronic cigarettes are growing, there is no clear indication how big the e-cig industry is in New Jersey. New Jersey could be jumping the gun and putting the welfare of small businesses in jeopardy. Ryan Bunting, a small e-cig retailer in Somerville, believes that legislators are trying to tax something without fully understanding it.
What are your thoughts on this proposed special tax?
Image Courtesy of Wall Street Journal