Repent, or Be Taxed! Vaping and Other Sin Taxes Bring States Large Tax Revenues

In recent years, as an alternative to the traditional tobacco products, vapor products have gained in prominence, particularly among younger individuals. Because vapor products usually fall outside the definition of tobacco products on which excise taxes are imposed, more than 20 states (and a few localities) have enacted specific provisions to impose tax on vapor products. This excise tax joins other so-called sin taxes on alcohol and marijuana consumption.

READ NOW »

Related Content    

• Tobacco Excise Taxes
  Explore the nature and scope of excise taxes applied to tobacco products manufactured in, or imported into, the United States. Compliance standards are rigorous, and violations are subject to a variety of criminal and civil penalties. 

• Alcohol Tax Federal and State Law Survey
  Learn how the federal government imposes excise taxes on the sale of alcohol through the Tobacco Tax and Trade Bureau (TTB), which operates within the Department of the Treasury. I.R.C. §§ 5601 through 5891. This state survey details the nature and scope of the federal excise tax on alcohol and the additional excise taxes of the laws in all 50 states plus the District of Columbia.

• Sales and Excise Tax on Marijuana State Law Survey
  Discover more about the growing number of states permitting (and taxing) cannabis/marijuana consumption for medical and/or recreational purposes. This state law survey provides an overview of the legal and regulatory status of marijuana in each state.

Practical Guidance Updates

Featuring the latest updates from your Practical Guidance account.  

• Take Our Short Survey and Earn a $5 Reward.*

• Tax Key Legal Developments Tracker (Federal)
  Stay informed on new developments.
  • International Tax: Finance ministers from across the rich world hailed as “historic” an agreement on changes to international corporate tax that set a 15% minimum corporate tax as well as new rules for taxing large multinational companies. G-7 Ministers Hail Historic Tax Deal (Law360® Tax Authority, 6/5/2021).
  • International Tax: IRS announces competent authority agreement with Switzerland under paragraph 3 of Article 25 (Mutual Agreement Procedure) regarding certain U.S. and Swiss pension or other retirement arrangements, including individual retirement savings plans, that may be eligible for benefits under the Convention Between the United States of America and the Swiss Confederation for the Avoidance of Double Taxation With Respect to Taxes. Announcement 2021-11; 2021-23 IRB 1196.

• Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.

• New Practical Guidance Content
  • Airport and Airway Trust Fund Excise Taxes
  • Tax and Accounting Aspects of Virtual Currency
  • Taxation of Cloud and Digital Transactions
  • Large Corporations and Wealthy Individuals Beware: The Tax Man Is Coming
  • COVID-19 Vaccine Considerations for Group Health Plans
  • Tracking Federal COVID-19 Laws Affecting Employee Benefits, Jobs

• Recently Updated Practical Guidance Content
  • Basic Tax Considerations in Divestiture Transactions
  • Summer Associate Resource Kit: Tax
  • 401(k) Plans: Understanding the Rules

*Subject to terms and conditions available here.

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+