A nearly year-old wholesale tax on electronic cigarette products in Pennsylvania has forced a rash of small business closures, a trade magazine reported.
According to the Daily Vaper, the 40 percent tax implemented in October 2016 has been responsible for shuttering at least 150 stores, and is threatening the vaping industry with collapse.
Officials in Pennsylvania argue the annual $13 million in tax revenue is needed, but Gregory Conley, president of the American Vaping Association, contends lawmakers have "refused to take lost revenue from store closings into account in its revenue projections," the outlet reported.
According to the Daily Vaper, the high Pennsylvania tax is pushing consumers out of state to buy. For example, the outlet reported, nicotine liquid that now costs nearly $10 in Pennsylvania is available in New Jersey for $4.99.
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