If you’re a vaper in Wisconsin, you may be wondering if there is a vape tax in your state. The answer is yes. Wisconsin has imposed an excise tax on vapor products received by distributors in the state since October 1, 2019. This includes out-of-state businesses that sell vapor products to retailers in Wisconsin, as well as businesses that sell untaxed vapor products at retail in Wisconsin.
The excise tax on vapor products in Wisconsin is part of the state’s efforts to regulate the sale and use of tobacco and nicotine products. The state has a comprehensive set of laws and regulations that cover everything from tobacco retailer licenses to restrictions on sales or gifts of cigarettes, nicotine, or tobacco products. The excise tax on vapor products is just one part of this broader regulatory framework. If you’re a distributor or retailer of vapor products in Wisconsin, it’s important to understand the state’s laws and regulations to ensure that you’re in compliance.
The Current State of Vape Tax in Wisconsin
If you are a vaper in Wisconsin, you might be wondering about the current state of vape tax. As of October 2023, Wisconsin imposes a tax on vapor products, which includes e-cigarettes, e-liquids, and other vaping devices.
According to the Wisconsin Department of Revenue, the vapor products tax is based on the wholesale price of the product. The tax rate is 5 cents per milliliter of e-liquid, and 10% of the wholesale price for other vapor products.
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It’s important to note that on July 10, 2020, the Wisconsin Supreme Court ruled in Bartlett vs. Evers that vapor products definition does not include the changes made by Governor Evers. This means that the tax only applies to products that meet the original definition of vapor products in Wisconsin law.
If you are a manufacturer that produces vapor products in Wisconsin for sale in Wisconsin, you are required to pay the vapor products excise tax. Consumers that purchase vapor products from someone who has not paid the vapor products excise tax must pay a use tax.
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Distributors of vapor products must apply for a permit by completing Form CTP-129, Cigarette and Tobacco/Vapor Products. If you are a retailer that sells vapor products, you are required to have a tobacco products retailer license.
It’s important to stay up-to-date with the latest regulations and tax laws regarding vapor products in Wisconsin. You can visit the Wisconsin Department of Revenue’s website for more information on vapor products tax and regulations.
Comparison with Other States
If you’re wondering how Wisconsin’s vape tax compares to other states, here’s a quick rundown.
State with the Highest Vape Tax
According to ComplyIQ, Minnesota has the highest vape tax in the country, with a wholesale tax rate of 95%. This means that for every dollar spent on vaping products in Minnesota, 95 cents goes towards taxes. This high tax rate is meant to discourage vaping and make it less accessible to consumers.
State with the Lowest Vape Tax
Wisconsin is actually one of the states with the lowest vape tax rates in the country. As reported by the Wisconsin State Journal, Wisconsin’s vape tax is tied for the lowest among at least 20 states with vaping taxes. The tax rate is $0.05 per milliliter, the same as in Delaware, Kansas, North Carolina, and Louisiana.
Overall, Wisconsin’s vape tax is relatively low compared to other states, making vaping products more affordable for consumers. However, it’s important to note that taxes on vaping products are still a relatively new development, and many states are still figuring out how to regulate and tax these products. As such, it’s possible that Wisconsin’s vape tax rate could change in the future.
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Impact on Consumers and Businesses
Consumer Behavior
The vapor products tax in Wisconsin has led to an increase in prices for consumers. According to the Wisconsin Legislative Fiscal Bureau, the tax on vapor products was estimated to raise $2.3 million in FY 2020 and $3.2 million in FY 2021. As a result, the tax revenue from cigarettes in the same fiscal years is projected to generate $512 million and $497 million, respectively.
This increase in price has led some consumers to reduce their consumption of vapor products or switch to other alternatives. For example, some have turned to traditional cigarettes or other tobacco products that are not subject to the same taxes. Others have started to purchase their vapor products from other states or online retailers to avoid the tax.
Business Reactions
The vapor products tax has also impacted businesses that sell these products. Businesses that sell vapor products are required to obtain a permit and report the vapor products tax to the Wisconsin Department of Revenue. Failure to do so can result in penalties and fines.
Some businesses have reported a decrease in sales since the tax was implemented. Others have had to increase their prices to cover the additional cost of the tax. This has made it more difficult for these businesses to compete with out-of-state or online retailers, who may not be subject to the same tax.
Overall, the impact of the vapor products tax on consumers and businesses in Wisconsin has been significant. While the tax has generated revenue for the state, it has also led to higher prices for consumers and challenges for businesses.
Legislation and Regulation
Existing Laws
Wisconsin has existing laws that regulate the sale and use of vapor products. As of October 1, 2019, an excise tax is imposed on vapor products received by distributors in Wisconsin [1]. The tax rate is $0.05 per ml of liquid or other substance [2]. Moreover, the sale or distribution of nicotine products to persons under 18 years old is prohibited [2].
Proposed Changes
There are currently no proposed changes to the existing laws regarding vapor products in Wisconsin. However, it is important to note that laws and regulations can change over time, so it is essential to stay updated on any potential changes that may affect the sale and use of vapor products in the state.
In conclusion, Wisconsin has existing laws that regulate the sale and use of vapor products, including an excise tax and age restrictions. While there are no proposed changes at this time, it is important to stay informed about any potential changes that may affect the sale and use of vapor products in the state.
Health and Safety Considerations
Health Risks of Vaping
Vaping has become a popular alternative to smoking, but it’s important to understand the potential health risks associated with it. According to the Wisconsin Department of Health Services, vaping can lead to lung injury, as well as other health problems such as nicotine addiction, heart disease, and stroke. The long-term effects of vaping are still being studied, but it’s important to understand that vaping is not a safe alternative to smoking.
One of the main concerns with vaping is the use of e-cigarettes, which can contain harmful chemicals such as formaldehyde and acrolein. These chemicals can cause respiratory problems and damage to the lungs. In addition, the nicotine in e-cigarettes can be addictive and harmful to the developing brains of young people.
Public Opinion
Public opinion on vaping has been mixed, with some people seeing it as a safer alternative to smoking, while others view it as a harmful habit. According to a survey by the Public Health Law Center, 64% of Wisconsin adults believe that e-cigarettes are harmful to health, while 22% believe they are not harmful.
It’s important to understand that vaping is not without risks, and it’s important to weigh the potential health risks against the perceived benefits. If you are considering vaping, it’s important to do your research and understand the potential risks before making a decision.
