On January 1, 2021, the following U.S. states saw noteworthy changes to local tax codes covering tobacco, vapes, and marijuana products.
Arizona: Voters in the state of Arizona voted to approve Proposition 207 during the 2020 November Election. Prop. 207 establishes a legal recreational marijuana industry and regulatory framework with the appropriate taxation structure. The overall implementation of Prop. 207 will take further months to iron out the specific tax and regulatory details.
Colorado: Voters in Colorado approved Proposition EE, which increases the state’s overall tobacco and vape tax. The first round of taxes took effect on January 1, and will further increase through 2027. Prop, EE increased the statutory cigarette tax from $0.84 to $1.94 per pack, further set a minimum after-tax retail price floor for cigarettes at $7 per pack. There is also an increased tax on other tobacco products, including wholesale and further consumption taxes on vapes and oral tobacco products. The bill also establishes a policy to only tax tobacco products that are approved by the U.S. Food and Drug Administration as “modified risk tobacco products” by half the state’s tobacco tax.
Georgia: On January 1, the state of Georgia imposed an excise tax on vapor products. This tax entered forced, per the enactment of Senate Bill 375 in June of 2020. The bill established a tax structure where closed vape products are taxed at 5 cents per fluid millilitre while open-system and other single-use vape products are taxed at a 7 percent rate of the