Tennessee Senate Passes Bill Imposing New Tax on E-Cigarettes

Apr.02

Tennessee Senate passes e-cigarette tax bill to reduce youth usage, facing concerns over impact on businesses.

Key Points:

The Senate of Tennessee has passed a regulation imposing a new 10% tax on certain e-cigarette products, which will now be reviewed by the House of Representatives.
The bill aims to reduce youth e-cigarette use by creating an FDA authorized product directory and requiring individuals to be at least 21 years old to purchase.
Some legislators and business owners are concerned that the bill will impact operations, as 500 approved products may struggle to sustain business.

According to a report by Fox17 on April 2, the Tennessee Senate has passed a new regulation to impose taxes on certain e-cigarette products. The regulation will now be reviewed by the House of Representatives.

According to the fiscal note of the bill, the new tax is expected to generate over $16 million in revenue for the state's general fund. If passed, the bill will impose a 10% tax on e-cigarette products.

According to data from the Tennessee Health Advisory Board, the rate of young people using e-cigarettes in Tennessee is more than double the national average, reaching 22%.

Senator Ken Yager stated that House Bill 0968 aims to prevent e-cigarettes, which are flooding the market, from causing harm to children. If the bill passes, the law will create a catalog of e-cigarette products authorized by the FDA for sale in Tennessee. Additionally, young people must present identification to prove they are over 21 years old.

Senator Jeff Yarbro agrees that there needs to be regulation for e-cigarettes, but he doesn't believe that this bill will address the root of the problem. Instead, it may impact businesses' operations.

Phil Harrell, a member of the Smoke-Free Association, expressed concerns on behalf of 800 e-cigarette stores in Tennessee. He is worried that the approval of fewer than 500 e-cigarette products may not be enough to support their businesses.

References:

[1] Tenn. vape tax bill moves forward, sparking debate between youth health and small business

Also Read:

[1] Tennessee Bill Seeks E-Cigarette Tax And Restrictions

[2] Controversy Surrounding Proposed E-cigarette Regulation in Tennessee

[3] Controversial Proposal: Tax and Regulation on E-Cigarette Products

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