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NC new excise tax on vapor products starting June 1 2015

North Carolina new excise tax will take effect next month. An excise tax is levied on vapor products at the rate of five cents ($.05) per fluid milliliter of consumable product starting on June 1 2015. A vapor product is defined by NC DOR as any non-lighted, noncombustible product that employs a mechanical heating element, battery, or electronic circuit regardless of shape or size and that can be used to produce vapor from nicotine in a solution. The term includes any vapor cartridge or other container of nicotine in a solution or other form that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.

The tax is due on a monthly basis and is reported on the new Form B-A-101, Monthly Other Tobacco Products Excise Tax Return. A monthly report covers sales and other activities occurring in a calendar month and is due within 20 days after the end of the month covered by the report. There is no floor tax due on the inventory since the Department considers this a new tax and not a tax increase.

What is a vapor product as defined by NC DOR? Any non-lighted, noncombustible product that employs a mechanical heating element, battery, or electronic circuit regardless of shape or size and that can be used to produce vapor from nicotine in a solution. The term includes any vapor cartridge or other container of nicotine in a solution or other form that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.

The vapor tax details are available at http://bit.ly/1XLlVsy