New York

Background

In recent years, New York State’s legislature has considered numerous proposals to tax e-cigarettes. None succeeded until 2019. In January, Governor Andrew Cuomo included a provision in his budget proposal to tax vaping products.

Despite opposition from consumer organizations including the New York State Vapor Association and the Consumer Advocates for Smoke Free Alternatives Association, the Governor’s budget bill (S.B. 1509C) was approved.

Tax rate and structure

The bill amends the Tax Law by adding Article 28-C, Supplemental Tax on Vapor Products, which defines vapor products as “any noncombustible liquid or gel, regardless of the presence of nicotine therein, that is manufactured in to a finished product for use in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, vaping pen, hookah pen or other similar device.”

Effective 1 December 2019, a tax of 20% is applied to the retail price of vaping products.