For the first time since 1993, North Dakota lawmakers plan to increase taxes on vapes and other related products. Retailers oppose this, arguing that it would penalize legitimate customers. The committee also questioned whether the tax increase would prevent minors from using these goods.
North Dakota lawmakers are calling for tax reform on tobacco and nicotine products, KFYR reported on Feb. 13.
House Bill 1570 proposes to increase taxes on products such as tobacco and smokeless tobacco for the first time since 1993 and plans to impose additional taxes on vaping and other products such as nicotine packs.Some of the revenue would go to a behavioral health fund.
Vicky Steiner, the bill’s sponsor, said it was intended to keep up with inflation and prevent minors from using the goods.
Retailers oppose this, arguing that they are not the root cause of underage use and saying the bill is attacking legitimate customers. Mike Rud, president of the North Dakota Petroleum Sellers Association, said, “We’re providing them with a legitimate product that they bought at a legal age.” We see no reason to take them away or why we should punish them and make them pay more.”
One financial report noted that the bill would raise $20 million in revenue every two years. The House Finance and Taxation Committee has yet to act. Some members questioned whether the tax increase would prevent minors from using the goods.
