Cigarettes are taxed heavily just about everywhere and with vaping products quickly replacing the tobacco products that in many places, so goes the tax revenue derived from their sale. So it should come as no surprise to find that the Municipality of Anchorage, Alaska is set to levy a 55% wholesale tax on all non-herbal vaping products on the first day of the new year.

As of January 1, 2021, vapers in Anchorage will be paying that much more for their vaping products. For whatever reason, herbal vaporizers are exempt from the new tax. Across the state, there isn’t a statewide tax, not yet anyhow.

The new tax comes after the entire Assembly unanimously approved the new tax. All ten members signed on after herbal vaping products were made exempt.

Should Vaping Products Be Taxed?

The debate over whether vaping products should be taxed continues, but it appears to be a losing battle for those in favor not taxing such products. While not all areas around the world have implemented taxes on vaping products, many have and the number of areas where such taxes now exist continues to rise.

Hard To Ignore Lost Tobacco Revenue From Taxes

While the justification for vape taxes varies, it’s clear that as people switch from smoking to vaping that tax revenue generated by tobacco taxes could diminish. While some may overlook the revenue generated by tobacco taxes, it is surely significant. Subsequently, it’s hard to ignore. Forced to examine where the money is going, it becomes apparent that vaping products are cutting into tobacco sales in a very significant and obvious way, making them a prime target for legislators intent on recouping lost revenue to fill local coffers.