Ohio House Bill 64 Taxes Vapor Products as Cigarettes (This is the Budget Bill)
The newly submitted Ohio House Bill 64 proposes the following new tax on vapor products:
For the purposes of this section and section 5744.03 of the Revised Code, the “cigarette equivalent” of a vapor product shall equal one of the following amounts:
(1) If the vapor product is sold in liquid form, one-tenth of one milliliter of vapor product;
(2) If the vapor product is sold in a nonliquid form, one gram of vapor product.
With this bill Ohio is also attempting to increase the cigarette tax to 11.25 cents per cigarette. So taxes on e-liquid would be:
10 mL bottle equals 100 cigarettes, therefore a $11.25 tax
15 mL bottle equals 150 cigarettes, therefore a $16.88 tax
30 mL bottle equals 300 cigarettes, therefore a $33.75 tax
Add the sales tax (roughly 7.25%), and if a 15 mL bottle of e-juice costs $10.00:
Current: 15mL = $10 + $0.73 sales tax = $10.73 total
New: 15 mL = $10 + $16.88 cigarette tax = $26.88 + $1.95 sales tax = $28.83 total
Or a 269% increase in cost.
Edited to add: This is Governor Kasich’s budget bill:
Short Title: Main Operating Budget FY2016-FY2017
Primary Sponsor: Representative Ryan Smith (R-Bidwell)