Montana voters reject tax on vapor products

Voters in Montana yesterday rejected the introduction of a new tax on electronic cigarettes. With results from 86% of precincts reported, 53% of voters opposed the passage of ballot initiative I-185.

The initiative sought to increase the excise tax on cigarettes by $2.00 per pack and would have raised the tax on other tobacco products as well. Among the new measures was a 33% tax on the wholesale prices of e-cigarettes and other vapor products. Revenue generated by the new taxes would be allocated to extending eligibility of Medicaid coverage under the Affordable Care Act and other health related programs in Montana.

The principle sponsors of the campaigns for and against initiative I-185 were the Montana Hospital Association (MHA) and Altria Client Services, respectively. Tabulating the outstanding ballots from the remaining precincts continues.