*UPDATED* Rhode Island Gov's proposed budget would tax e-cigs at 80%, ANTZ bill would severely restrict online sales

[Bill Godshall]

Rhode Island Governor Lincoln Chafee’s budget proposal (H 7133) would protect cigarettes by imposing an 80% e-cig tax, referred to House Finance Cmte
Bill Text: RI H7133 | 2014 | Regular Session | Introduced | LegiScan

Rhode Island bill (HB 7021) sponsored by ANTZ would redefine tobacco products to include e-cigs, ban sales to minors, require e-cig marketers to buy tobacco license, impose unwarranted and costly burdens for Internet e-cig vendors, referred to House Judiciary Cmte
http://webserver.rilin.state.ri.us/BillText/BillText14/HouseText14/H7021.pdf

CASAA issues Call to Action opposing proposed 80% tax on e-cigs in RI, and bill to impose excessive restrictions on online sellers
CASAA: Call to Action! Rhode Island Bills Impose 80% Tax on E-Cigarettes and Unreasonable Requirements for Online Sales

Please note that Governor Chafee vetoed a good bill to ban e-cig sales to minors in 2013 (after the ANTZ urged him to do so), and Chafee's veto address claimed that the bill (to ban sales to minors) wasn't enough to protect children from e-cigs.

All vapers and vendors in RI need to oppose these measures.

RI lawmakers need to know that MA Gov. Deval Patrick chose to not tax e-cigs, and that an 80% tax on e-cig products will generate very little new revenue because all (or nearly all) vape shops and vendors in RI will move a few miles to either CT or MA, and that most RI vapers will simply travel a few miles to CT or MA to buy their products.

 

[Coelli]

Hey, he's got to make up for the 38 Studios debacle somehow!

80%? That's insane.

 

[rothenbj]

In addition to B&Ms moving, I'm sure most vapors will look elsewhere to buy. Why travel further when there's vendors right there in cyber world.

 

[Eric A. Blair]

"It is difficult to get a man to understand something, when his salary depends on his not understanding it."

---Upton Sinclair

State and federal governments are addicted to cigarette tax revenue. It's all about the money. Big Pharma funded crony capitalist groups are just parasites on the host. Technology like E cigarettes threw a monkey wrench into their entire plan.

100 years ago Sinclair thought that good benevolent government would be the solution to the problem.

 

[rothenbj]

My Uncle just moved back to the States after living in the UK for 27 years. Over half their population works in the public sector. Add to that the number that are on public welfare and you have the minority working to support the majority. I don't think we've gotten that bad, but both sections of our society are getting too big. It's about time for someone other than tobacco/nicotine users to pick up some of the slack.

 

[Jman8]

Please note that Governor Chafee vetoed a good bill to ban e-cig sales to minors in 2013 (after the ANTZ urged him to do so), and Chafee's veto address claimed that the bill (to ban sales to minors) wasn't enough to protect children from e-cigs.

Can someone remind me again why ANTZ does this (the bolded part)?

 

[stevegmu]

Is that 80% of the wholesale cost of the nicotine in the juice? I can't read through 245 pages of bill to find out...

 

[claudebo]

Hi Steve
here is the draft of the bill portion pertaining to e-cigs.
It seems they are going after the retailers mainly.

Typical old world model.
The e-cigs industry is anything but that.
What would e-cigs be like if there was no internet,
forum, online vendors. Not much and relatively easy
to tax because the sources of the product would be limited.

We are no longer in that world, and e-cigs is not alone in that
online world, think of music, book and movie industry.
How would you tax a song from pandora or MOG. The model for doing that
has not come out yet because of the complexities of doing so. My kids barely
know what a music CD is and never use them (sigh never mine my boxes of
vinyls in the basement sigh).

I think (except for truck stop displays of Blu's etc) e-cigs will be like trying to control
{OTHER STUFF}, they never could do it.

Please excuse my early morning caffeine ramblings here is the draft of the bill. : )

----------------------------------------------------------------------------------------------------------------

(5) "Electronic cigarette", commonly known as "E-Cigarette", means a personal
34 vaporizer, electronic nicotine delivery system or an electronic inhaler, which generally utilizes a


LC003615 - Page 113 of 245
1 heating element that vaporizes a liquid solution containing nicotine or nicotine derivative.
2 (5)(6) "Importer" means any person who imports into the United States, either directly or
3 indirectly, a finished cigarette for sale or distribution;
4 (6)(7) "Licensed", when used with reference to a manufacturer, importer, distributor or
5 dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for
6 the type of business being engaged in. When the term "licensed" is used before a list of entities,
7 such as "licensed manufacturer, importer, wholesale dealer, or retailer dealer," such term shall be
8 deemed to apply to each entity in such list;
9 (7)(8) "Manufacturer" means any person who manufactures, fabricates, assembles,
10 processes, or labels a finished cigarette;
11 (8)(9) "Person" means any individual, including an employee or agent, firm, fiduciary,
12 partnership, corporation, trust, or association, however formed;
13 (9)(10) "Place of business" means and includes any place where cigarettes are sold or
14 where cigarettes are stored or kept for the purpose of sale or consumption, including any vessel,
15 vehicle, airplane, train, or vending machine;
16 (10)(11) "Sale" or "sell" includes and applies to gifts, exchanges, and barter;
17 (11)(12) "Stamp" means the impression, device, stamp, label, or print manufactured,
18 printed, or made as prescribed by the administrator to be affixed to packages of cigarettes, as
19 evidence of the payment of the tax provided by this chapter or to indicate that the cigarettes are
20 intended for a sale or distribution in this state that is exempt from state tax under the provisions of
21 state law; and also includes impressions made by metering machines authorized to be used under
22 the provisions of this chapter.
23 44-20-13.2. Tax imposed on smokeless tobacco, cigars, and pipe tobacco products. --
24 (a) A tax is imposed on all smokeless tobacco, electronic cigarettes, cigars, and pipe tobacco
25 products sold or held for sale in the state by any person, the payment of the tax to be
26 accomplished according to a mechanism established by the administrator, division of taxation,
27 department of administration. Any tobacco product on which the proper amount of tax provided
28 for in this chapter has been paid, payment being evidenced by a stamp, is not subject to a further
29 tax under this chapter. The tax imposed by this section shall be as follows:
30 (1) At the rate of eighty percent (80%) of the wholesale cost of cigars, pipe tobacco
31 products and smokeless tobacco other than snuff.
32 (2) Notwithstanding the eighty percent (80%) rate in subsection (a) above, in the case of
33 cigars, the tax shall not exceed fifty cents ($.50) for each cigar.
34 (3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the like


LC003615 - Page 114 of 245
1 rate on all fractional parts of an ounce thereof. Such tax shall be computed based on the net
2 weight as listed by the manufacturer, provided, however, that any product listed by the
3 manufacturer as having a net weight of less than 1.2 ounces shall be taxed as if the product has a
4 net weight of 1.2 ounces.
5 (b) Any dealer having in his or her possession any tobacco, cigars, and pipe tobacco
6 products with respect to the storage or use of which a tax is imposed by this section shall, within
7 five (5) days after coming into possession of the tobacco, cigars, and pipe tobacco in this state,
8 file a return with the tax administrator in a form prescribed by the tax administrator. The return
9 shall be accompanied by a payment of the amount of the tax shown on the form to be due.
10 Records required under this section shall be preserved on the premises described in the relevant
11 license in such a manner as to ensure permanency and accessibility for inspection at reasonable
12 hours by authorized personnel of the administrator.
13 (c) The proceeds collected are paid into the general fund.
------------------------------------------------------------------------------------------------------------------------------------------

 

[rothenbj]

claudebo, that wasn't much of a ramble at all. The internet is a new world of commerce that government hasn't figured out how to get their greedy hands on. You can buy just about any product via it. Many of those products are not taxed. It's not far from the old world. You could travel to Delaware from NJ, PA and Maryland fairly easily to buy big ticket items and avoid the state sales tax on those items. Now you can get them from any state as long as they don't do business in your state.

 

[Bill Godshall]

It appears the proposed 80% e-cig tax in RI would apply to mods and cigalikes (both disposables and those using replacement cartridges), but wouldn't apply to e-liquid, replacement cartridges, batteries or rechargers.

(5) "Electronic cigarette", commonly known as "E-Cigarette", means a personal
vaporizer, electronic nicotine delivery system or an electronic inhaler, which generally utilizes a
heating element that vaporizes a liquid solution containing nicotine or nicotine derivative.

 

[STiZzle2010]

Well this is just fantastic (in the most sarcastic way possible)...

 

[Zap]

Looks like there's been a hearing scheduled for this abhorrent bill:

UPDATE 2/6/14: BREAKING! The House Finance Committee has scheduled a hearing on Thursday, February 13th at approximately 4:00 PM (or shortly thereafter) to take public comment on the proposed e-cigarette tax. The hearing will take place in Room 35 of the State House (82 Smith Street, Providence, RI). Your help is needed to stop this outrageous and harmful tax. Please attend and speak. (As a sign of respect, we ask you to please refrain from vaping in the committee room.)

From here: CASAA: Call to Action! Rhode Island Bills Impose 80% Tax on E-Cigarettes and Unreasonable Requirements for Online Sales

There's a facebook group started for the hearing... https://www.facebook.com/events/587301528030830/?ref_newsfeed_story_type=regular

We need everyone we can get at the state house. Please share this with anyone and everyone.

 

[STiZzle2010]

Damn I wish I could go but, I am stuck working until 8 PM...

Please keep us updated!!!

 

[Placebo Effect]

Bad weather is hitting the Northeast on Thursday, so I expect (and hope) that the hearing is rescheduled.

I was going to fly in for the hearing, but I've redirected my flight to get me home before the storm comes.

 

[Zap]

Tomorrow is Rhode Island vaper's last chance to speak against this obscene money grab. I'm so sick of living in fear while the damn general assembly is in session. There is no relief every year until they adjourn. If you can't make it tomorrow, please be sure to call/write the members of both committees and your individual reps.
-------------------------------------------------
UPDATE 2/18/14 - The House Finance Committee has scheduled a hearing on THURSDAY, March 6th, 2014 at approximately 4:00 PM (or shortly thereafter) to take public comment on the proposed e-cigarette tax.

The hearing will take place in Room 35 of the State House (82 Smith Street, Providence, RI). Your help is needed to stop this outrageous tax. Please attend and speak. (As a sign of respect, we ask you to please refrain from vaping in the committee room.)

CASAA: Call to Action! Rhode Island Bills Impose 80% Tax on E-Cigarettes and Unreasonable Requirements for Online Sales
https://www.facebook.com/events/587301528030830/?ref_newsfeed_story_type=regular

 

[sonicdsl]

***UPDATE***

CASAA CTA here: CASAA: Call to Action! Rhode Island Bills Impose 80% Tax on E-Cigarettes and Unreasonable Requirements for Online Sales

UPDATE 5/28/14: HB 7021 has been set for a hearing on THURSDAY, MAY 29th, 2014 before the House Judiciary Committee. The hearing will be open to the public and testimony will be accepted. A vote may occur at the discretion of the chairman. The meeting will occur at the "rise of the House" (approximately 4:00 PM) in Room 101 of the State House (82 Smith Street in Providence).

Rhode Island vapers and harm reduction advocates, please (1) attend the hearing on THURSDAY, May 29th, 2014 to offer testimony in opposition to HB 7021, and (2) participate in CASAA's CQ Roll Call Campaign:

 

[DrMA]

So, how did the hearing go?

 

[sonicdsl]

UPDATE 6/4/14: This is a good news/bad news update. The bad news: HB 7133 has been set for consideration by the House Committee on Finance on THURSDAY, June 5th, 2014. HB 7133 includes, among other things, an excise tax of 80% of wholesale price on all e-cigarette devices.

It is imperative that vapers and harm reduction advocates contact members of the House Finance Committee NOW to express opposition to the e-cigarette tax. We're also asking that you proactively contact the Senate Finance Committee as well. Full details on contact information and suggested talking points are included in Part II of this Call to Action.

The good news: Due to efforts of CASAA members, the House Judiciary Committee decided to hold HB 7021 (restrictions on internet sales) for further study. We will continue to update on HB 7021 as more information becomes available

CASAA: Call to Action! Rhode Island Bills Impose 80% Tax on E-Cigarettes and Unreasonable Requirements for Online Sales

 

[Berylanna]

Well of course any state that wants to put an 80% tax on something wants to ban online sales! Duh! But it would help if it were a bigger state.....it looks like you can WALK out of RI faster than you can drive out of California at freeway speeds. I saw another news story that RI was just now inching it's way out of a recession. Gee, you think killing off a bunch of small businesses will help with that?

 

[squee]

Looks like that whole section of the bill was taken out. According to the status page: Committee on Finance recommends indefinite postponement of the original bill and passage of Substitute A
And here is the SubA bill: http://webserver.rilin.state.ri.us/BillText/BillText14/HouseText14/H7133A.pdf

I can't find anything about ecigs or tobacco products in the SubA bill