Nicotine Tax Added to Infrastructure Bill Again

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by Ruthless Vapor

November 12, 2021

In addition to all the drama surrounding negotiations about the infrastructure bill, there is also a large nicotine tax that has been added back onto it.

First of all, let’s clarify some things about the infrastructure bill. One such infrastructure bill has already been passed – that is a smaller bill, and not the one with the nicotine tax on it. The bill with the nicotine tax is much larger, and it is still being negotiated by congress. The bill is also referred to as the Build Back Better plan. While there are some articles that say the nicotine tax was removed, the nicotine tax was then put back into the bill.

The Build Back Better bill mainly focuses on infrastructure – it allocates and sets rules for roads, power systems, water systems, and internet infrastructure. The main reason there is a nicotine tax attached is because it is a big bill that is being pushed. It is easier to stick a tax on a major bill that is getting pushed through than to implement a tax separately. Additionally, the Infrastructure bill needs to fund itself, and a tax on vapes helps fund the bill.

The current version of the nicotine tax only applies to vaping products and nicotine pouches. The tax depends on the amount of nicotine sold, with an inconvenient guideline of $50.33 per 1,810 milligrams of nicotine, both synthetic and tobacco derived nicotine.

For reference, a 120ml 3mg bottle would have a $10.08 tax applied to it, nearly doubling or tripling the price of the bottle. That tax is applied on top of local taxes, which can already be quite expensive.

While cigarettes were originally included in the tax, they were taken out in the current form. So in reality, it’s a nicotine tax except on the most-well-known form of nicotine.

While the bill will undoubtedly go through more revisions, the tax is still worth being concerned about. Check out CASAA (Consumer Advocates for Smoke-free Alternatives Association) for more information on how to contact your senators and representatives!

References:

Infrastructure bill: Here’s what’s in it

Stop an Excessive Federal Tax on Safer Nicotine Products



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