An article by Bryan Haynes of the Troutman Sanders Tobacco practice appears in the January issue of Vapor Digest Magazine. The article, titled “Vapor Industry Regulation – Predications for 2015” discusses the regulatory landscape that could be facing the vapor industry during the upcoming year. Aside from the FDA’s deeming regulations, which may become finalized during the coming year, Bryan speculates on the likelihood of additional regulations, primarily on a state level.
He predicts that states other than Minnesota and North Carolina will impose a tax on e-cigarettes in the coming year, and that it is less a question of how many more states will add a tax, and more one of how said tax will be imposed. Bryan believes that it is more likely the North Carolina taxation model, which taxes the e-liquid itself, will be the prevailing system over Minnesota’s, which taxes the entire unit as a percentage of the cost. Additionally, it is possible that 2015 will bring about a federal excise tax on vapor products – especially when considered in light of the current FDA user fee collection mechanism. User fees arguably cannot be collected for vapor products until they are first subjected to a federal excise tax, as the user fee amount is currently calculated based on the federal tax paid.
In addition to the FDA regulations and the question of taxation, it likely that the industry will see increased state regulations on flavorings, tamper-proof packaging, and youth access. The coming year will be an interesting one for the vapor industry – be sure to stay tuned for further updates!
The full text of the article can be found here.