Hawaii to Impose Tobacco Tax on E-cigarettes

Apr.10.2023
Hawaii to Impose Tobacco Tax on E-cigarettes
Hawaii new tax bill includes e-cigarettes in tobacco tax and raises license fees for retailers, while a bill regulating e-cigarettes fails.

On April 8th, The Honolulu Star-Advertiser reported that a new tax bill for Hawaii (S.B 975) was approved by the state's Finance Committee (FIN). However, a bill aimed at addressing the increase in youth vaping (S.B 1447) has been declared "dead" as it did not appear on the agenda for the state hearing held on April 6th.


The new law will include electronic cigarettes in tobacco taxation and regulation.


Senate Bill No. 975 proposes to amend the definition of "tobacco products" in the Cigarette and Tobacco Tax Law to include electronic cigarettes and e-cigarette liquid products. This means that e-cigarette products will be subject to the same tax standards as tobacco products such as cigarettes. Additionally, the bill proposes an increase in licensing fees for distributors and retailers engaged in the sale of cigarettes and tobacco products.


The bill states that the current tax rate for electronic cigarettes is much lower than that of combustible cigarettes, and the government needs to make taxation adjustments.


SB 975 Bill | Image Source: Hawaii State Legislature Website


According to a search by 2FIRSTS, the bill has been proposed for a third reading by FIN, indicating that it has met the criteria for approval and has been recommended for passage by the committee.


According to a report in The Honolulu Star-Advertiser, lawmakers and candidates in Hawaii were asked to sign pledges this year promising to refuse any campaign donations from tobacco companies. Currently, 30 sitting legislators have signed the pledge.


According to a survey, nearly one-third of public high school students and almost one-fifth of middle school students in Hawaii frequently use electronic cigarettes.


Supporters of the bill believe that increasing taxes would be an effective measure in reducing the use of e-cigarettes among price-sensitive young people.


The bill for regulating electronic cigarettes has not scheduled a public hearing.


As previously reported by 2FIRSTS, a proposed bill (S.B 1447) by Senator Brandon Elefante suggests allowing each county to reintroduce their own tobacco regulations, with the aim of overturning the 2018 state legislation in Hawaii. This measure would permit county governments to enact regulations that are stricter than state laws.


The American Cancer Society's Cancer Action Network, the American Heart Association, the American Lung Association, the Smoke-free Kids Campaign, and the Hawaii Public Health Institute are among the health organizations hopeful about this bill. They support returning enforcement power over tobacco products to individual counties, as the legislative body failed to stop the sale of flavored tobacco statewide.


However, as the bill was not scheduled for a hearing by the Hawaii Committee on Finance (FIN) before April 6th, it is no longer able to move forward.


In March 2023, a proposed bill (HB 511) to ban the sale of flavored tobacco products in Hawaii failed due to a missed hearing schedule.


Further reading:


Hawaii to reinstate flavor ban; experts say it may lead to expansion of black market for e-cigarettes.


The proposed ban on flavored tobacco products in Hawaii failed to pass through the state legislature, but another anti-smoking bill has been added to the parliamentary agenda.


A new law in California will prohibit individuals born after 2002 from possessing, purchasing, or using tobacco or electronic cigarettes.


Reference:


A bill that would have granted Hawaii's counties authority to regulate vaping has failed to progress out of committee and is now considered dead legislation.


SB975 Bill


The official website of the "Smoke-free Children's Movement.


Senate Bill 1447



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

BP, Marathon and Valero Warn U.S. Gas-Station Stores: Illegal Vape Sales Could Bring Heavy Fines and Card-Processing Limits
BP, Marathon and Valero Warn U.S. Gas-Station Stores: Illegal Vape Sales Could Bring Heavy Fines and Card-Processing Limits
Fiserv and service station operators including BP, Marathon Petroleum and Valero have warned U.S. partners and gas-station convenience-store owners that selling illegal vapes could lead to heavy fines, breach brand agreements and even put stores’ card-processing access at risk, according to Reuters.
Regulations
Jul.07 by 2Firsts Perspectives
How AI Is Rewriting the Talent Playbook for the Nicotine Industry: JTI’s Case
How AI Is Rewriting the Talent Playbook for the Nicotine Industry: JTI’s Case
AI is moving from a back-office tool to a core organizational capability in the nicotine industry. Based on JTI’s responses, this 2Firsts feature examines how AI is reshaping talent strategy, internal mobility, decision-making and human accountability as global tobacco companies compete in the shift toward new nicotine categories.
Jun.17
AHA Journal Study: WS-23 Triples Premature Heartbeats, Raising Concerns Over Vape Cooling Agents
AHA Journal Study: WS-23 Triples Premature Heartbeats, Raising Concerns Over Vape Cooling Agents
A University of Louisville research team published a study in an American Heart Association journal suggesting that synthetic cooling agents used in e-cigarettes, including WS-3 and WS-23, may disrupt cardiac electrical activity and increase arrhythmia risk. In animal experiments, WS-23 tripled premature heartbeats.
Jun.16
Nature Health Comment Urges Wider Role for Smoke-Free Nicotine Products in Tobacco Control
Nature Health Comment Urges Wider Role for Smoke-Free Nicotine Products in Tobacco Control
Ahead of World No Tobacco Day, a Nature Health Comment by Robert Beaglehole, Ruth Bonita and Tikki Pang argues that regulated smoke-free nicotine products could help accelerate the global decline in smoking. The authors propose a “smoke-free 2040” goal and call for risk-proportionate regulation distinguishing cigarettes from lower-risk nicotine alternatives.
News
May.20
India Seizes $14 Million Worth of Illegal Vaping Products Imported From China
India Seizes $14 Million Worth of Illegal Vaping Products Imported From China
India’s Directorate of Revenue Intelligence (DRI) seized approximately 300,000 illegal e-cigarettes and vaping devices worth more than ₹120 crore (approximately $14 million) during coordinated multi-state enforcement operations.
Regulations
May.22
Product | Vapsolo Launches Sixer 180K, Introducing a 6-in-1 Architecture for Disposable Vapes
Product | Vapsolo Launches Sixer 180K, Introducing a 6-in-1 Architecture for Disposable Vapes
Vapsolo has launched the Sixer 180K, a flagship disposable vape built around a 6-in-1 architecture featuring six independent e-liquid tanks and six dedicated mesh coils. Alongside a claimed up to 180,000 puffs, the new device reflects a broader shift in disposable vape development from increasing puff counts toward modular hardware design and multi-flavor user experience.
Jul.03