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Indiana panel backs 20 percent tax on e-cigarette liquids

Indiana would impose a 20 percent tax on the liquids used in electronic cigarettes under a proposal endorsed by a legislative committee. Photo courtesy Lindsay Fox / Flickr / CC BY 2.0

INDIANAPOLIS (AP) — Indiana would impose a 20 percent tax on the liquids used in electronic cigarettes under a proposal endorsed by a legislative committee.

The Senate Appropriations Committee voted Thursday in support of the bill. The vote came after the committee adopted the tax on price of the vaping liquid, rather than a 4 cents per-milliliter tax that was back by the House in February.

Republican Sen. Travis Holdman of Markle says the 20 percent tax comes out to a similar total tax on a pack of cigarettes and will be easier to calculate than a tax based on the amount of vaping liquid sold.

Supporters argue the tax could discourage vaping, especially among younger users.

The full Senate could vote on the proposal next week.

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