Michigan Gov. Gretchen Whitmer Proposes New Tax On Vapes, Nicotine Pouches
The 32% wholesale tax rate was proposed by the Whitmer administration
Nicotine products like vapes and oral pouches would face the same 32% wholesale tax as most tobacco products under a new proposal from Gov. Gretchen Whitmer that aims to“curb usage and protect public health.”
Extending the tax to non-tobacco nicotine products would “close a loophole” in state law, Kyle Guerrant, the deputy state budget director, told lawmakers Wednesday during a presentation on the governor’s new budget proposal.
While Michigan taxes cigarettes at a flat $2 per pack, non-cigarette tobacco products are taxed 32% at the wholesale level. Nicotine products without tobacco, however, have avoided the tax to date.
The Whitmer administration estimates the new “vape tax” would generate $57 million a year in revenue, which would go toward “smoking and cancer prevention, youth mental health and physical health and access to healthcare,” Guerrant said.
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