Vermont House Approves Steep E-Cigarette Tax Hike, Regulations

Published May 5, 2015

Vermont lawmakers narrowly approved a 46 percent tax hike on the price of e-cigarettes.

The tax hike, part of a larger health-care reform bill entitled “An Act Related to Health Care,” also adds candy and soda to the list of products subject to the state’s 6 percent sales tax. Other provisions included in the bill include increasing Medicaid reimbursement rates for physicians and diverting more state funds towards the state’s single-payer health-care system, Green Mountain Care.

The measure also regulates where e-cigarettes may be advertised, and bans e-cigarette use in public areas and workplaces.

Some Vermont lawmakers opposed the regulations, warning that more study was needed before enacting new regulations.

As reported by WCAX‘s Kyle Midura, state Rep. Bob Helm (R-Fair Haven) was reluctant to add new regulations.

“Let’s just put it on hold for a year. I’m not saying I’m against it, all I’m saying is put it on hold for a year,” he said. Let’s get some good concrete information before we go flying off the handle.”

The House of Representatives voted 70-67 in favor of the new taxes.

Jesse Hathaway ([email protected]) is managing editor of Budget & Tax News.

“Vermont State House in Montpelier” by Jonathanking – Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons,