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 electric 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 millions of dollars trying 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 vapinger.com 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, and as a result, their cigarette tax rates may also be growing rapidly. Several same states also 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.
Based on the filing with the FDA, the tobacco industry is being targeted unfairly. The tobacco industry is doing 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 left the door spacious to regulation of vaporizer devices. The FDA claims that this over-regulation defeats the purpose of regulating and controlling the usage of vaporizers.
The fact is that the FDA itself isn’t 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 order 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. They also can’t tax the merchandise at a higher rate compared to the federal government does.
Also, the FDA itself is not directly involved in the manufacturing of the vaporizer. Tobacco companies manufacture their own products, and they are the ones 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 if the manufacturer doesn’t, then your company doesn’t get its license.
So, the states that impose taxes on vaporizer devices do not get the benefit of having a federal regulator, or a manufacturer that is licensed by the state. So, instead, they find methods 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 may be the federal body responsible for regulating pharmaceuticals, health supplements and cosmetics. It has the power 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 instead of tobacco manufacturers? The FDA knows that regulating weight loss supplements isn’t likely to work because you can find no controlled weight loss supplements currently in the marketplace. And, even if there were, they couldn’t force food manufacturers to sell diet pills containing things that are banned by state law.
So, instead, the states want to force the FDA to create some kind of rule or regulation that may require a manufacturer to sell their devices in a specific manner, according to state regulations. Which makes no sense at all. It also flies when confronted with the original purpose of the Food Drug and Administration Act. Why the FDA is targeting these devices is really a question that only experts in the FDA can answer.