What is Vermont’s tax on e-cigarettes?
Electronic cigarettes (e-cigarettes) and other tobacco products are subject to the Tobacco Products Tax, which is a 92% excise tax paid by wholesale dealers and added to the final retail price paid by the consumer.
What are the items taxed as tobacco products?
The following products are subject to the Tobacco Products Tax:
Tobacco. Certain tobacco products are taxable in Vermont when manufactured from, derived from, or contain tobacco, and when intended for human consumption. This excludes cigarettes, little cigars, roll-your-own tobacco, snuff, and new smokeless tobacco, which are subject to different taxes and rates.
Tobacco Substitutes. Taxable tobacco substitutes are products that contain or are designed to deliver nicotine or other substances into the body through the inhalation of vapor and have not been approved by the U.S. Food and Drug Administration for tobacco cessation or other medical purposes. Tobacco substitutes include electronic cigarettes or other electronic or battery-powered devices.
Liquids. Liquids are taxable whether they contain nicotine or other substances.
Delivery devices. Delivery devices sold separately for use with a tobacco substitute are taxable.
Examples of taxable products are e-cigarettes, vaping liquid of any substance even if it does not contain nicotine, and vaping apparel such as hoodies. Repair parts, accessories, and charging devices that can only be used in vaping devices or are custom made for vaping devices are taxable. The content of vaping liquid is immaterial for the purposes of taxation. If a product is sold to be vaped, then it is taxable. Products manufactured from, derived from, or containing tobacco that are intended for human consumption continue to be taxable.
Examples of nontaxable products are generic items that could be used for other purposes, such as batteries, chargers, protection equipment, carrying cases, and cleaning products. Generally, if accessories or repair parts can be used in non-vaping products, then they are not taxable.
Vaping devices and liquids or oils containing cannabis that are sold at a licensed cannabis establishment are not subject to Tobacco Products Tax. They are instead subject to Cannabis Excise Tax.
What forms must be filed and when are the due dates?
The Tobacco Products Tax Form CTT-646, Wholesale Cigarette And Tobacco Dealer Report And Tax Return must be filed and paid monthly by every licensed wholesale dealer, even when no tax is due. The return and tax are due 15 days following the end of the month. To register, file your return, and pay taxes due, go to myVTax. If you have any questions, contact us at (802) 828-2551 or email@example.com.
Does sales tax apply to sales of other tobacco products?
Yes, sales tax applies to retail sales of other tobacco products such as e-cigarettes. Consumers will pay sales tax in addition to the Tobacco Products Tax, which is added to the final price. This is not a change to the current taxation of other tobacco products, which are already subject to sales tax at the point of retail sale.
Are cannabis or hemp products subject to the Tobacco Products Tax?
Act 3 (H.145), Sec.91, effective July 1, 2023, updated legislation states the Tobacco Products Tax shall not be applied to cannabis or hemp products that do not contain tobacco that are sold at a licensed cannabis establishment.