As I was reading through the news on Google for electronic cigarettes today, I came across an article that caught my eye by the headline. KSFR.org, a website for a radio station based out of Santa Fe, New Mexico, talks about a proposal introduced by a Senator that would impose a tax on electronic cigarettes in their state.
Obviously, something like this has been long expected and feared in the e-cigarette industry. As people keep trying to compare e cigarettes to traditional tobacco cigarettes, it might not be long until we see the same kind of taxes imposed on them as we see with regular cigarettes. The proposal calls for a 66 percent tax on these products. Conventional cigarette taxes are also in the proposal, which calls for an increase of the current tax of $1.00 to increase to $2.66.
I personally hate this, but am recognizing the inevitable, despite how much I disagree with it. I wonder if this will extend to e-commerce outlets like the ones on my page, if the recipient of an online order is a resident of New Mexico, does the retailer then have an obligation to charge taxes on that order? Or is it up to the customer to account for it in their tax preparation, if the tax isn’t imposed by the e-retailer? I don’t know, I’m not a tax expert.
I’m curious to hear your thoughts on this issue. Do you think that this proposal will go through? If it does, do you think we will see other states follow suit? Would a tax of this amount affect the amount you use e cigarettes? I’m happy with the way things are now and am hoping that this proposal does not go through – with the exception of the portion pertaining to conventional cigarettes – as I fear it would get the ball rolling for national legislation of this type.