The eJuices.co team hopes that you and your business are doing well. While the election is (mostly) settled, this is no time to sit back. We recommend strongly that youtake action and encourage your customers to do so as well. In this edition of State of Vape, we talk aboutvaping legislation that has hit the states of Colorado and Oregon.
What Are The New Taxes?
Colorado’s Proposition EE raises taxes on both vaping products and cigarettes. Colorado voters have approved the measure by a huge margin. This raises taxes on eJuices by around 30% of the manufacturer listing price (MLP) in 2021, eventually rising to 62% of MLP by 2027. This measure, while not outright banning flavors, will force shops in Colorado to deal with the rising costs of doing business over the next six years. One notable exception to the rule? Altria,who may have their taxesreduced as a result of Proposition EE. Altria helped negotiate the language in Proposition EE, so it’s not surprising that they benefit from this vaping legislation.
Over in Oregon, Measure 108 taxed eJuice and hardware at a staggering 65% of wholesale prices. Voters also approved this measure by a large margin. Interestingly enough, this tax will not apply to cannabis vaping products or any vaping products sold by licensed cannabis dispensaries. Like with any other tax on any product, this could amount to higher prices for your customers.
What Are Some Solutions?
First, it is important totake action regarding vape, as we mentioned before. The eJuices.co team (and perhaps all in the vaping industry) do not want you to pass the cost onto your customers or close up shop. You can try diversifying your product offerings by visiting our friends over atCBD.co. CBD.co has thousands of tested CBD products available for your shop.
It is most likely that these states are attempting the taxing route to keep these products inaccessible, much like they do with alcohol and cigarettes. The eJuices.co team is here to help. If you have any questions or concerns, you can always contact your eJuices.co account manager or sales representative.