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On May 15, 2013, the Joint Committee on Taxation gave a Do Not Pass Recommendation to HP 950. The bill is no longer a substantial threat, but action from Maine vapers is still important to ensure it is not brought back.
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Maine is the subject of a CASAA Call To Action as of April 23rd 2013. n
If enacted, this bill would n
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- Tax electronic cigarettes by redefining “tobacco products ” under Maine tax law to include “products containing, made or derived from tobacco that are intended for human consumption by any means, or any components, parts or accessories of tobacco products. ” n
- Impose a wholesale tax on all smoke free products (including e cigarettes) that will be equivalent to the tax on a pack of cigarettes (currently $2.00). The Maine State Tax Assessor will be given the power to decide how this tax would be applied to e cigarette disposables, liquid, mods, cartomizers, atomizers, batteries, etc. n
- Make it a crime punishable by up to 6 months in prison and a $1,000 fine for a Maine citizen to import more than one pound of e cigarette products (see Title 36, 4404 A) n
- Require e cigarette vendors to obtain a tobacco retail license to sell e cigarettes (see Title 36, 4402) n
- Make it a crime punishable by up to 6 months in prison and a $1,000 fine for a Maine e cigarette vendor to sell products to any retailer who does not hold a Maine retail tobacco license. (see Title 36, 4404 B) n
- Give law enforcement authorities the authority to seize e cigarette products from citizens if they believe it to be contraband (i.e., it was obtained without paying the Maine tax). (see Title 36, 4404 B) n n
HB 950 has been referred to the Committee on Taxation, which is comprised of members of both the Maine Senate and House. No hearing has been scheduled. If you can attend the hearing or are in Maine and would like to offer your assistance in stopping this bill, please e mail board
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This bill will cause all tobacco products to be taxed at the same rate as cigarettes n
Item 7B (as it stands on April 3rd, 2013) which defines smokeless tobacco products will almost certainly include electronic cigarettes in this legislation. n
See also this ECF thread for a discussion of the issue. n
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