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



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