On April 30th, the Hawaii State Legislature passed a bill (SB 975 SD2 HD3) related to electronic cigarette taxation. The bill proposes to impose the same tax rate on electronic cigarettes as traditional cigarettes, with a wholesale tax of up to 70%.
Currently, there is no tax imposed on e-cigarette products in the state of Hawaii. However, a proposed bill aims to categorize e-cigarette products as tobacco products. Bill 975 seeks to amend the definition of "tobacco products" in the Cigarette and Tobacco Tax Law to include e-cigarettes and e-cigarette liquids.
This means that electronic cigarette products will be subject to the same tax standards as tobacco products such as cigarettes. Tobacco or nasal snuff products in Hawaii will be subject to a state consumption tax of 70% of the wholesale price as well as federal consumption tax.
Furthermore, the bill proposes an increase in the licensing fees for distributors and retailers of cigarettes and tobacco products.
Before this year's legislative session ended, the bill was passed by both Hawaii House of Representatives and Senate.
If Governor Josh Green signs the bill, it will become law in the state of Hawaii and go into effect on January 1, 2024.
Earlier, according to a report by 2FIRSTS, two bills relating to electronic cigarettes in Hawaii were terminated in the legislative process and did not receive passage in the legislature.
The proposed Senate Bill 1447 suggests allowing each county to reintroduce its own tobacco regulations, with the aim of overturning the 2018 legislation of Hawaii. However, the bill was not scheduled for a hearing in the Hawaii Finance Committee (FIN) by April 6th, thus rendering the bill unable to move forward. The flavor ban on tobacco products bill (HB511) reintroduced by Hawaii lawmakers in 2023 was not scheduled for a hearing on March 23rd, indicating that the bill will not continue to advance in the state legislature.
The SB975 SD2 HD3 has become a bill that has been passed by both houses of Congress, but it is still uncertain whether it will become law.
In 2022, the bill to ban flavored e-cigarettes in Hawaii was vetoed by then-Governor David Ige. He did not support the ban on flavored tobacco and refused to sign the bill.
Further reading:
Hawaii to Reinstate Flavor Ban, Experts Say it May Lead to Increase in E-Cigarette Black Market.
The "flavor ban" in Hawaii, which aimed to restrict flavored tobacco products, did not pass the state legislature, while another anti-smoking bill has been added to the legislative agenda.
A new law in California will prohibit individuals born after 2002 from possessing, purchasing, or using tobacco or electronic cigarettes.
Hawaiian legislators introduce new electronic cigarette tax bill while original electronic cigarette regulation bill remains delayed.
References:
After a nine-year battle, advocates against vaping are celebrating as vape products will now be taxed at a level similar to tobacco. The victory has left them feeling overjoyed.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
