The Maryland state legislature has overridden Governor Larry Hogan’s veto of a bill passed last year, which will impose a tax on vaping product sales.

The resurrection of the vape tax got little attention because the bill, HB 732, also includes a controversial digital advertising tax intended to fund major changes to the state’s education system.

The new law will add a six percent sales tax at the point of sale (in addition to the state’s standard six percent sales tax) on all open-system vaping products, and a 60 percent tax on e-liquid in containers smaller than five milliliters (pod- and cartridge-based vapes, disposables, and cigalikes). The law will also almost double the state’s tax on cigarettes, increasing the per-pack levy from $2.00 to $3.75.

The law preempts local governments from adding additional taxes on vaping products, but allows local taxes that were established before Jan. 1, 2020.

Read full article here.

Jim McDonald – Vaping360 – Feb 19, 2021.

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