Nevada lawmakers debate whether e-cigs should be taxed like cigars, chew

CARSON CITY — State lawmakers were baffled Thursday over whether electronic cigarettes and liquid nicotine should be taxed as other tobacco products and suggested the push to tax may be premature.

The Senate Revenue and Economic Development Committee considered Senate Bill 79, requested by the Department of Taxation. The bill would tax e-cigarettes and liquid nicotine products at a rate of 30 percent of the wholesale price, the same as other tobacco products like cigars and chew.

But committee members questioned the appropriateness of taxing liquid nicotine and debated whether the state should tax products that might help people quit smoking.

“Everything I’ve read and heard, theses vapors are safer than cigarettes,” said Sen. Michael Roberson, R-Henderson, and chairman of the committee. If that’s so, “Why would be discourage the safer alternative by taxing?” he asked.

Blake Doerr, chief deputy at the Department of Taxation, said the public health policy was for another agency to consider. From that tax perspective, it’s about revenue.

“The underlying policy on taxing tobacco was to generate revenue,” Doerr said.

Over the past five years, state revenues from cigarette excise taxes have fallen $5 million to $100 annually, tax officials said. They attribute some of that decline to the growing popularity of vaping — liquid nicotine inhaled through battery-powered devices.

Tax officials could not estimate how much the proposed tax would generate but suggested that if nicotine is being used as a replacement for tobacco, it should be subject to taxation.

But senators were cautious.

Sen. Aaron Ford, D-Las Vegas, said other products such as nicotine patches or gum aren’t taxed.

The committee said there are a lot of unknowns and suggested taxing vaping products may be premature.

“I think it’s a given that nicotine’s bad for you,” said Sen. Joe Hardy, a Boulder City Republican and a physician.

“This is being marketed not as a cessation device, it is being marketed to keep buying,” he said. He also questioned the effects of dyes and flavors used in liquid nicotine on health.

But several witnesses testified how they used vaping to kick cigarettes.

James Clippard, 25, of Fallon, said he began smoking at 16 and watched his father, grandparents and other relatives die of smoking-related diseases.

“They all smoked,” he said. “I hope to alleviate that premature death.” He said he currently vapes a blend that does not contain nicotine.

The U.S. Food and Drug Administration is currently considering rules to regulate e-cigarettes and liquid nicotine.

Sen. Pat Spearman, D-North Las Vegas, said she was concerned about the level of training for people who mix batches of liquid nicotine.

No action was taken by the committee, and Roberson said it’s unlikely it will proceed.

Contact Sandra Chereb at schereb@reviewjournal.com or 775-687-3901. Find her on Twitter: @SandraChereb