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Senate of Pennsylvania
Session of 2015 - 2016 Regular Session


Posted: September 1, 2016 09:37 AM
From: Senator Thomas H. Killion
To: All Senate members
Subject: Electronic Cigarette and Vaping – Floor Tax
Since the enactment of Act 84 of 2016 on July 13, 2016, I have been contacted by several vape shop business owners who have expressed concerns with the 40 percent tax imposed on electronic cigarettes and vaping equipment—more specifically, the floor tax associated with the Tobacco Product Tax has presented a significant burden for shop owners.

Some of these vape shop small business owners have shared with me that the impact of the floor tax is especially problematic because they do not move the vaping hardware inventory quickly. In some instances, vaporizers can sit on shelves for several months. The floor tax will force some small business owners to pay the 40 percent tax on expensive hardware they have not been able to liquidate. For these small business owners, this is a significant burden that requires a substantial amount of cash.

Therefore, I am introducing legislation that would extend the due date for the tax to be paid and reported on a form prescribed by the Department of Revenue from 90 days to 180 days, a date within the current 2016-2017 fiscal year. The change has no adverse budget implications. The change will give shop owners more time to sell their inventory so that they have cash to pay the tax due or make alternative financing arrangements to meet their tax obligation.

Please join me in co-sponsoring this legislation.

Introduced as SB1362