The U.S. House Committee on Ways and Means on October 23, 2019, approved the following four health-related tax bills:
Proposed new vaping excise tax: H.R. 4742 (the vaping excise tax bill) would tax nicotine in vaping at the same rate as small cigarettes—that is, a tax of $50.33 per 1,810 milligrams of “taxable nicotine.” The bill specifically excludes any FDA-approved nicotine replacement therapies and exempts other nicotine products already subject to tax. The manufacturer of the taxable nicotine would be liable for the tax, and the tax would be administered by the Alcohol and Tobacco Tax and Trade Bureau. The occupational tax would also apply to manufacturers of taxable nicotine under the bill.
Text of the bills and text of the amendments are available on the Ways and Means website.
The Joint Committee on Taxation released the following documents in advance of the Ways and Means action:
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