Kansas Modifying How They Tax E-Cigarettes

May 24, 2017

Kansas Modifying How They Tax E-Cigarettes

Two years after the Kansas Legislature enacted its first special tax on e-cigarettes, the state is now looking to reduce it dramatically.

The tax — 20 cents per milliliter of vaping liquid, more than twice as high as any other state — was tacked on to a larger bill at the end of the historically long and grinding 2015 session. There were no public hearings on the tax, which originally was supposed to go into effect in July 2016 but was later pushed back to January 2017.

But there's good news for vapers.  This year’s legislative fix, Senate Bill 96, would lower the tax from 20 cents per milliliter to 5 cents per milliliter and authorize the revenue department to start collecting it on July 1. The Senate passed the bill unanimously and the House voted 123-2 in favor of it, although the House amended the bill so the Senate must concur or send it to a conference committee.

We think this is a big step in the right direction for tax policy and public health for all Kansans.  You can read our view from taxfoundation.org on how tax policy should be made here.