By: Angela Garrity
The cost of vaping nicotine products could soon be on the rise, according to a report from Bloomberg Law.
On Wednesday, the House and Means Committee will mark up H.R. 4742, in hopes to align taxation of nicotine in vaping products to that of traditional cigarettes.
In the proposal, nicotine manufactured in or imported into the United States that has been extracted, concentrated, or synthesized is “subject to a tax equal to the dollar amount specified in section 5701(b)(1) (or, if greater, $50.33) per 1,810 milligrams of nicotine (and a proportionate tax at the like rate on any fractional part thereof).’’
An exception applies for FDA approved nicotine replacement therapies.
Other tobacco products shall not be treated as containing taxable nicotine, as well.
If passed, the act becomes effective within 90 days.