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 quite some time and are becoming more acceptable in mainstream American life, the tobacco companies are determined to fight these efforts vigorously. They’ve made huge amount of money 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 happens to be being contested in the courts, and both sides expect an answer sooner or later soon.
State taxation uprights vaporizers by regulating their sale. It’s estimated that about 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 grown rapidly in recent years, and as a consequence, their cigarette tax rates are also growing rapidly. A number of these same states also have placed taxes on cigar and pipe tobacco. It seems that smoking just gets more expensive, and that’s what the tobacco industry is shooting for.
According to the filing with the FDA, the tobacco industry is being targeted unfairly. The tobacco industry does everything they can to fight regulation of vaporizer devices. As we’ve seen, the U.S. Supreme Court has multiple times ruled against the FDA over-regulation of cigarettes. These rulings have gone the door wide open to regulation of vaporizer devices. The FDA claims that this over-regulation defeats the purpose of regulating and controlling the use of vaporizers.
The truth is that the FDA itself isn’t even necessary to regulate or control these industries. Only state governments have that authority. It’s the state governments that impose their very own taxes, and several 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 than the authorities does.
Also, the FDA itself isn’t directly involved in the manufacturing of the vaporizer. Tobacco companies manufacture their own products, and they are those that get sued by the states and levied taxes. The FDA merely approves or denies manufacturer licenses based upon whether these manufacturers follow federal law. And when the manufacturer doesn’t, then your company doesn’t get its license.
So, the states that do impose taxes on vaporizer devices don’t get the benefit of having a federal regulator, or a manufacturer that’s licensed by hawaii. 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 MEALS and Drug Administration is the federal body in charge of 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 trying to tell the FDA to target Vaping online users rather than tobacco manufacturers? The FDA knows that regulating diet pills isn’t likely to work because there are no controlled diet pills currently in the marketplace. And, even if there have been, they couldn’t force food manufacturers to market diet pills containing ingredients that are banned by state law.
So, instead, the states are trying to force the FDA to create some type of rule or regulation that may require a manufacturer to sell their devices in a specific manner, according to state regulations. That makes no sense at all. It also flies when confronted with the original purpose of the meals Drug and Administration Act. Why the FDA is targeting the unit is a question that only experts in the FDA vapinger.com can answer.