Newsom proposes new vaping tax based on a product's nicotine content

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Newsom proposes new vaping tax based on a product's nicotine content
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Alarmed by an epidemic of youth vaping, Gov. Gavin Newsom on Friday proposed a new tax on electronic cigarette products containing nicotine and threw his support behind a legislative plan to ban all flavored tobacco sales by the end of this year.

to permanently prohibit the sale of all flavored tobacco at retail stores. The state proposal would extend to menthol-flavored products, which are not covered by the Trump administration’s plan.

On Friday, Newsom praised state lawmakers for their bill, noting that the state would “do more than the federal government did on the flavors.” Tobacco products already face state taxes totaling $2.87 per pack of cigarettes in California, and the tax extends to products used for vaping. But vaping products are taxed at the wholesale level before the products are marked up in price for retail sale, so some groups say they are undertaxed compared with cigarettes.

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