Why are so many electronic cigarette stores fearful of the FDA deeming?

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Hello again, still Dawn here and today’s topic is one that has a lot of people feeling a whole variety of different things. Most customers are confused and most business owners are afraid and angry. It’s hard to blame them really.

The simple fact is that with this new FDA draft document that names electronic cigarettes as a “deemed” tobacco product the federal government has not only single-handedly changed the entire way this industry works on a national level, they have opened a ton of doors on the state fronts as well! This could lead this industry down a number of sticky paths. In fact, that is exactly what is already happening in many cases at the state level.

Take a look for yourself ⇓

 

march-22-vapor-tax-map-2016

 

I know this can be difficult to read so let me explain some of the harder to read features of this map.

Yellow States :  Alright the yellow states are states where taxes are pending. So here in Michigan for instance, we are looking at a 32% tax if the bills that are currently sitting in our regulatory committees get passed. That would put us in the same high tax bracket that burning tobacco is in…..ouch. Kinda feels like I am getting punished for trying to get away from burning tobacco. (But that’s just my opinion.)

Orange States: These states also have taxes that are being considered but they differ from yellow states because these pending taxes are waiting for a turn on the voting ballot. So these states are leaving it to the people to decide. If you are from an orange state….get your vote on!!

Blue States: The good news color! These are states where taxes have been lobbied for, but were defeted. That does not mean they will not try again. It just means that these states are getting people involved and really taking the rights of electronic cigarette users seriously. WTG Blue states!

Red and Pink States: These guys are already in trouble. Both Red and pink states already have the taxes on the books. Red are already being collected where as pink is just waiting to go into full effect. So in Minnesota,a there is a 95% tax on electronic cigarettes…………… That is higher than on burning tobacco…does anyone see the issue here?

I hope that helps understand the map, but there is so much more to talk about here. Unlike most items which are taxed at one rate state wide, tobacco can incur local taxes too! That’s right each city or county can enact a tax on electronic cigarettes. They can also set regulations /per county and local municipality.

Unlike most items which are taxed at one rate state wide, tobacco can incur local taxes too! That’s right each city or county can enact a tax on electronic cigarettes. They can also set regulations /per county and local municipality.

To break it down, here at A Clean Cigarette we have 18 store location. All of our stores have pretty much the same products at the same price. IF we see the same type of taxation and regulation here in Michigan on electronic cigarettes as we do on burning tobacco that will no longer be the case.

What we will be able to sell and at what price we sell at may be very different than what we can sell in our Midland store. Talk about doing a dis-service to the customer.

It’s already happening in Illinois, the tax in Cook county is completely different than in the city of Chicago and different still in the rest of the state.cross-roads-regulations

It is projected that at the rate of all these new taxes and regulations nearly 2 million people will lose their job nation-wide. That’s a lot of loss and a lot of families affected.  With all this uncertainty and with states like Pennsylvania just passing the dreaded “floor tax” (Floor tax mean they come in and tax a company on every product they have on their floor or in a warehouse. That would cost A Clean Cigarette nearly a half a million dollars in just taxes……….) and Indiana where with the swipe of a pen the state government has wipe out all but a few electronic cigarette providers, you can imagine why owners and employees of electronic cigarette stores are worried!

Well, I am sure this has not cleared it all up, but I do hope it helps you understand what is happening at least to some extent. Please check back often, things are starting to heat up here in Michigan and we are going to need YOU if we are going to protect electronic cigarette rights. Very soon I will be coming to you with information on our calls to action and a really great opportunity to stand up and fight in a useful and beneficial way.

Thanks for stopping in and if you have any questions just drop me a line at AccAnswers@gmail.com or stop into our web store at acleancigarette.com. Thank you!

Bye,

Dawn



DawnACC
DawnACC

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