Starting from Saturday (August 1) local time, Kentucky began to levy consumption tax on closed and open electronic cigarettes.
Earlier this year, Kentucky lawmakers approved House bill 351, which includes a excise tax on steam products. According to reports, in addition to the national sales tax of 6%, there will be a consumption tax on closed and open air extraction systems respectively.
According to Kentucky's website, Kentucky will now charge a excise tax of $1.50 for each enclosed pole or cartridge and a 15% excise tax on each open-end electronic cigarette.
It is reported that the new excise tax on e-cigarettes is expected to bring about $7.9 million in revenue to the state in the current fiscal year, and will increase slightly in the next few years as it does not begin on July 1, the beginning of the current fiscal year.