Vapor Products May Continue To Avoid Tobacco Tax

Feb 18, 2014

Electronic cigarettes and other vapor products would continue to be subjected to sales taxes, and not tobacco excise taxes, under a bill approved by a Senate committee.

Credit Izuaniz /

The Senate Finance Committee voted 6-4 on Tuesday for the bill by Yukon Republican state Sen. Rob Johnson. The bill now heads to the full Senate for consideration.

The bill specifically defines "vapor products" to include electronic cigarettes or other devices that use a heating element to convert nicotine into an inhalable water vapor. Such products would continue to be subjected to local and state sales taxes, but not the excise tax that is placed on tobacco products.

The bill is supported by a group that represents vapor shop owners from across the state.


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