Is State Tax Rates Hiking Up The Price Of Vaporizers?
The U.S. tobacco industry is fighting back against efforts by state regulatory bodies and consumers to regulate the sale of electronic cigarettes. While vaporizers have been around for a long time and so are becoming more acceptable in mainstream American life, the tobacco companies are determined to fight these efforts vigorously. They’ve made huge amount of money attempting to defeat state taxing and regulation efforts. Now, they’re making their next move: challenging the legality of the taxation themselves. In a new legal filing, they’re claiming that the FDA over regulates and creates a “guaranteed” interstate transportation business. The filing is currently being contested in the courts, and both sides expect a resolution sooner or later soon.
State taxation uprights vaporizers by regulating their sale. It’s estimated that about twenty states have uprights to market vaporizer devices, including California, Colorado, D.C., Florida, Hawaii, Illinois, Maryland, Massachusetts, Montana, Nevada, New Hampshire, Oregon, Pennsylvania, and Washington. These states have become rapidly in recent years, so when a consequence, their cigarette tax rates may also be growing rapidly. Several same states likewise have placed taxes on cigar and pipe tobacco. It seems that smoking just gets more costly, and that is what the tobacco industry is shooting for.
According to the filing with the FDA, the tobacco industry is being targeted unfairly. The tobacco industry does everything they can to fight against regulation of vaporizer devices. As we’ve seen, the U.S. Supreme Court has multiple times ruled contrary to the FDA over-regulation of cigarettes. These rulings have gone the door wide open to regulation of vaporizer devices. The FDA claims that over-regulation defeats the objective of regulating and controlling the usage of vaporizers.
The truth is that the FDA itself is not even required to regulate or control these industries. Only state governments have that authority. It is the state governments that impose their very own taxes, and many states have imposed increased taxes in an effort to try to curb smoking. But the state governments are themselves at a disadvantage. They can not regulate wholesale prices since these prices are regulated by state laws. In addition they can’t tax the merchandise at a higher rate compared to the authorities does.
Also, the FDA itself is not directly mixed up in manufacturing of the vaporizer. Tobacco companies manufacture their very own products, and they are those that get sued by the states and levied taxes. The FDA merely approves or denies manufacturer licenses based on whether these manufacturers follow federal law. And when the manufacturer doesn’t, then your company doesn’t get JUUL Pods its license.
So, the states that do impose taxes on vaporizer devices don’t get the benefit of having a federal regulator, or perhaps a manufacturer that’s licensed by hawaii. So, instead, they find ways to increase taxes on the manufactures themselves! Which makes no sense. Why are these manufacturers being targeted specifically? There’s no real reason.
The Food and Drug Administration is the federal body responsible for regulating pharmaceuticals, health supplements and cosmetics. It has the capacity to ban the production or sale of any chemical or substance that it determines is unsafe. So, why are states attempting to tell the FDA to focus on Vaping online users rather than tobacco manufacturers? The FDA knows that regulating diet pills isn’t likely to work because you can find no controlled weight loss supplements currently that you can buy. And, even if there have been, they couldn’t force food manufacturers to sell diet pills containing ingredients that are banned by state law.
So, instead, the states want to force the FDA to come up with some kind of rule or regulation that may require a manufacturer to market their devices in a specific manner, according to state regulations. That makes no sense at all. It also flies in the face of the original purpose of the meals Drug and Administration Act. Why the FDA is targeting the unit is a question that only experts in the FDA can answer.