Did the Vapor Industry Just Dodge an Expensive Bullet?
Most Americans have by now heard of the Biden Administration’s Build Back Better Act, which was recently passed by the House and promptly shelved by the Senate. Most Americans also know that, among other things, the Build Back Better Act would have imposed a minimum tax on the profits of large corporations, that it sought to reduce the childcare cost burden on most American families, and that it contained a large tax credit for new electric vehicle purchases.
At just under 2,500 pages, what you may have missed were the major changes to the way in which the federal government would assess and collect new taxes on manufacturers and importers of nicotine – even synthetic nicotine – destined for use in vapor products (or just about any product, for that matter). You will find that provision appropriately titled “Imposition Of Tax On Nicotine For Use In Vaping, etc. – .”
The proposed new tax on synthetic nicotine is based on an extension of an existing tax on cigarettes and would likely have resulted in a significant cost burden on everyone in the synthetic nicotine chain, from manufacturers down to retailers. As of this writing, however, the bill – and its proposed nicotine tax – appears largely sidelined. While the Clark-Esposito Law Firm, P.C. continues to monitor updates on the possibility of renewed Senate negotiations over the bill, companies who would be affected by the tax should take a few moments to learn about the structure of the tax, just in case the bill is resurrected. To learn more about the details of the bill, click the button below to read our full article. In the article we also outline some of the regulatory implications which would likely flow from the Build Back Better Act’s definition of “taxable nicotine.”
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