By a narrow margin of just nine votes, members of the House have agreed to not impose a new tax on e-cigarette liquids.
The product is still subject to the state’s 6 percent sales tax, but lawmakers were looking to add an additional tax by the milliliter that would bring in some $2 million each year in additional state revenues.
The amended bill still bumps up the tax rate on smokeless tobacco products and increases the tax on cigarettes by 45 cents per pack.
House Finance Chair Eric Nelson spoke against the e-cigarette exemption on the floor. He said the House Finance Committee has already crafted a budget that counts on those increased tax dollars.
“Well we’ve used $78 million in our budget. Now we’re down to $76.3 or $76.2 million. Granted its only $1.8 million, but every million is counting right now.”
Senators have already approved a version of the bill that includes the new tax on e-cigarettes. The amended version now heads back to the chamber where it will have to be once again put to a vote.
