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E-Cig Laws

E-cigarettes and alternative nicotine products would be categorized as smokeless tobacco and subject to a new tax, under legislation introduced Wednesday by Senate Majority Leader Randy Richardville. The measure would establish a 15 cent per 1.5 milliliters and proportionate rate on all fractions of 1.5 milliliters tax on vapor products. Gongwer News Service reports it also would change how loose tobacco, or “moist snuff,” is taxed, moving it out of the 32 percent rate and instead taxing it at the rate of 53 cents per ounce. Tobacco distributors who collect the tax would see their cut of those revenues rise from 1 percent to 1.5 percent. The legislation comes amid a stalemate between Governor Rick Snyder and the Legislature on bills that would block there sale of e-cigarettes to minors, but do not treat them as a tobacco product, which are taxed at 32 percent of the wholesale price.

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