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 electronic cigarettes. While vaporizers have already 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 attempting to defeat state taxing and regulation efforts. Now, they’re making their next move: challenging the legality of the taxation themselves. In a new 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 may also be growing rapidly. A number of these same states also have placed taxes on cigar and pipe tobacco. It appears that smoking just gets more expensive, and that’s what the tobacco industry is shooting for.
According to the filing with the FDA, the tobacco industry is being targeted unfairly. The tobacco industry does everything they can to fight regulation of vaporizer devices. As we’ve seen, the U.S. Supreme Court has multiple times ruled contrary to the FDA over-regulation of cigarettes. These rulings have gone the door wide open to regulation of vaporizer devices. The FDA claims that this over-regulation defeats the objective of regulating and controlling the use 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 very own taxes, and many states have imposed increased taxes in an effort to try to curb smoking. However 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 product 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 very own products, and they are those that get sued by the states and levied taxes. The FDA merely approves or denies manufacturer licenses based upon whether these manufacturers follow federal law. And if the manufacturer doesn’t, then the company doesn’t get its license.
So, the states that impose taxes on vaporizer devices don’t get the benefit of Disposable Vape having a federal regulator, or perhaps a manufacturer that is licensed by hawaii. So, instead, they find methods to increase taxes on the manufactures themselves! Which makes no sense. Why are these manufacturers being targeted specifically? There is no real reason.
The Food and Drug Administration may be the federal body in charge of regulating pharmaceuticals, dietary supplements and cosmetics. It gets 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 instead of tobacco manufacturers? The FDA knows that regulating diet pills isn’t likely to work because you can find no controlled weight loss supplements currently that you can buy. And, even if there have been, they couldn’t force food manufacturers to sell diet pills containing things that are banned by state law.
So, instead, the states want to force the FDA to create some kind of rule or regulation which will require a manufacturer to market their devices in a particular manner, in accordance with state regulations. That makes no sense at all. It also flies in the face of the original purpose of the Food Drug and Administration Act. Why the FDA is targeting the unit is really a question that only experts in the FDA can answer.