What Kind of Impact Does Vaping Have on the Economy?

I am no Economics major. I'm terrible with numbers, actually. So, I'm going to preface with this: if you see a mistake in my math, PLEASE TELL ME. I'm awful at math. No shame.

As most of you know, I work in a vape shop in Pennsylvania, where we have a 40% wholesale tax on vapor products. This tax went into effect on October 1st, 2016, and oh my, what a mess it was.

The 40% wholesale tax was on e v e r y t h i n g. Devices, tanks, 18650 batteries, e-liquid, chargers, even vape bands! There was also a floor tax, meaning we had to pay a 40% wholesale tax on everything already in the store.

Luckily, in 2018, Kingdom Wholesale Vapors challenged the Pennsylvania Department of Revenue stating that the law was written to be on "full kits" and e-liquid only. Kingdom Wholesale Vapors won the lawsuit, and the Department of Revenue is in process of returning money to vape shop owners.

Now though, vape shop owners pay a 40% wholesale tax on full kits, which is any device that comes with a mod, tank, coil and battery. Built in battery box mods (like the VooPoo Mojo) is a good example. Then of course, e-liquid.

This tax is paid per order (usually). This all changes depending on what you are ordering, but where I'm at, it's usually between $100-$200 PER ORDER. I'd say we have about 3-6 orders a month. If we do 3 orders at $100 in taxes, it's $300 a month. If we do 6 orders at $200 an order, $1,200 a month.

I know in 2017 we calculated that we had spent $36,000 in taxes alone, but that was pre-Kingdom Wholesale Vapors lawsuit.

For argument's sake, let's say we pay $1,200 a month in taxes. That's $14,400 from ONE vape shop. Just in the greater Pittsburgh area, there are 39 vape shops. That's $561,600 in taxes alone. From one area of Pennsylvania. Assuming we are all paying $1,200 a month in taxes, of course.

That's just from a vaping tax. Don't forget the employees who are paying into federal, state and local taxes per paycheck. There's roughly...15,000 vape shops in the United States? 150,000 employees or so? Yeah, that is a pretty strong economic impact.

Speaking of employees and whatnot, is the government willing to dish out a ton of money for the 150,000+ people who would be filing for unemployment? That's an economic hit.

For the government to be considering a flavor ban....it's quite the mistake.

Let's keep on fighting! Vape on, and Happy New Year!

Questions? Comments? Let me know!

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