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PA Vaping Shops Getting Burnt By New State Tax

PHILADELPHIA (CBS) - E-cigarette merchants are feeling the sting of a new state tax that went into effect in October.

Britta Peterson has watched business dry up at Fishtown Vapes since a 40-percent tax on e-cigs and e-liquids kicked in:

"We have cut down our inventory quite a bit. When the 40-percent tax first went through people were really upset about that, they still are. I know a lot of other shops in the state have been talking about shutting down."

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Britta Stephenson of Fishtown Vapes (Credit: Paul Kurtz)

The sweeping legislation also imposes a 40-percent tax on vaping-related inventory such as equipment, batteries and coils.

"We're frustrated because no other industry is taxed at that high of a rate," says Peterson. "It seems like they're taxing us particularly high."

Peterson and many others in the industry are worried that without some sort of amendment to the legislation they may be taxed out of business.

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