Kentucky lawmakers have approved a 15% excise tax on e-cigarettes, claiming that it will prevent young people from using the devices.
The state Senate added the tax to the catch-all revenue bill, House Bill 351, a trimmed-down version of HB 32, which, among other things, would have put a 25% tax on e-cigarettes, generating about US$50 million. HB 351 will reduce the taxes to 15% on open vaping systems, and add a US$1.50-per-pod tax on closed vapor cartridges.