Vapor Excise Taxes in Louisiana

The sale of vapor products grew by 23 percent in 2014, and some project that vapor products will surpass traditional cigarettes in consumption over the next decade. This leaves policymakers with the challenge of determining exactly how or whether these emerging products should be taxed.In the 2015 legislative session, at least 25 states and the District of Columbia considered legislation to tax vapor products, either as part of a budget proposal or as a stand-alone bill. Ultimately, Louisiana, Kansas, and the District of Columbia enacted such legislation, bringing the total number of states taxing vapor products to five. Additionally, Montgomery County, Maryland, and Cook County and the City of Chicago in Illinois enacted vapor taxes in 2015.

Act 94 of the 2015 Regular Session of the Louisiana Legislature amended R.S. 47:841 and 842 to impose a tax of five cents per milliliter on consumable vapor products. This tax was effective August 1, 2015. The tax is due from the dealer who first sells, consumes, handles or distributes vapor products in Louisiana. If you are currently selling vapor products or considering doing so, get in touch with us to discuss the reporting requirements for vapor products.

Read the full article on TaxFoundation.org
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