Five states and D.C. apply existing "other tobacco products" tax rates.
Revenues & Estimating
Because states tax these products differently, it’s important to look at states with comparable taxing structures when estimating revenues. According to NCSL’s 2019 State Tax Actions survey responses, state estimates for new vaping taxes for FY 2020 ranged from $1 million to $10 million in revenues. Revenues are likely to fluctuate in 2020. Recent federal law changes raised the minimum age for tobacco products to 21, which effectively shrinks the tax base. At the same time, e-cigarettes and vape products remain in the spotlight and may inspire other states to adopt new taxes on these products.