NC House supports Tax Increase on E-Cigarettes

North Carolina is proposing a 5¢ per milliliter tax on the liquid used in electronic cigarettes. If this law passes, North Carolina would be the second state in the nation to have an excise tax on electronic cigarettes. Minnesota is the only state in the country that has a tax on e-cigarettes. Many other states have tried to tax e-cigarettes, including our neighbor South Carolina last year, and all have failed.

The North Carolina House debated the Omnibus Tax Law Changes bill today for the second time.  Yesterday very little debate was given on the tax proposal.  The bill passed with a bi-partisan vote of 83-35.   The bill in debate is a large bill meant to clarify and correct some of the tax changes that were made last year in the tax reform legislation.  Today the bill was debated a second time and received a favorable vote of 84-29 and has been sent to the Senate.

While last year Republicans championed tax reform and tax cuts for many across the state, this year they are wanting to propose a tax on those that are trying to make themselves healthier.  Doesn’t sound like good tax policy to me.

Sarah Curry

Sarah Curry is Director of Fiscal Policy Studies at the John Locke Foundation.

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