FAIRMONT, W.Va. — A group of small business owners wants lawmakers to drop the proposal to increase the tobacco tax which would also be tacked on to their alternatives to loose leaf tobacco.
The state Senate passed a bill last week, originally introduced by Gov. Earl Ray Tomblin, that would make the tax on each pack of cigarettes $1.55, a $1.00 increase. The governor originally proposed a 45-cent-a-pack increase. The bill (SB420) also includes language to tax e-cigarettes, nicotine laced vapor tubes and the hardware to use them.
Shawn Dunn, owner of two “vape” shops in Monongalia and Harrison counties, said the businesses are mom and pop shops and will suffer financially under the proposed legislation.
“It would be a crippling blow to almost every shop. It would be like a death sentence for us,” said the owner of EVapor.
A 7.5-cent tax is proposed on each milliliter of product for the e-cigarettes. A 12-cent tax would be tacked on to the hardware the vape shops sell.
Dunn estimates the tax would cost him between $30,000 and $50,000 right off the bat if the bill goes through. Business owners would have 60 days after April 1 to pay the tax on inventory already on the shelves.
He said it would be in addition to what shops like his are already contributing to the state’s tax base.
“We’ve got a lot of shops throughout the state. We are contributing millions of dollars right now in sales tax, local B&O tax, etc.,” Dunn added.
While West Virginia lawmakers are considering the tobacco tax to make a dent in a $350 million predicted budget shortfall, Dunn said the bill will force his customers to shop elsewhere.
“Our products are easily and readily available online with the click of a mouse. Of course, like the cigarettes, the border counties, there are a lot of vape shops that would not be charging this tax. So, our sales would plummet,” Dunn predicted.
The tobacco tax bill is currently in front of the House Finance Commission, which has yet to put it on its agenda.