Background: Minnesota first applied an excise tax to electronic cigarettes in 2011. In October 2012 the Department of Revenue declared that electronic cigarettes met the definition of a tobacco product and should be subject to the State’s tobacco tax.

Because the tax falls on any product derived from tobacco a cartridge containing a nicotine solution is subject to the tax but reusuable or refillable devices and components as well as cartridges containing nicotine free solution are not subject to the tax. The rate was originally set at 70% of the wholesale price but was increased to 95% in August 2013 along with the rate on other tobacco products.



Categorised in: Country, Electronic cigarettes, Excise tax, Minnesota, USA

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