New Tax on Vaping in Delaware

Starting January 1st of this year, residents and those travelling to Delaware will be taxed on e-juice purchases.

With the electronic cigarette industry predicted to grow from an estimated 2015 value of $8 billion to $48 billion by 2023, legislators everywhere seem to be looking for new ways to cash in on this rapidly expanding new industry that has previously been largely overlooked.

Delaware Gov. John Carney initially proposed a 30 percent wholesale tax on e-liquid that could have seriously threatened the dozens of vape shops currently operating within the state. According to the VTA (The Vapor Technology Association), 100 shops in Pennsylvania (around 20% of the shops open in the state at the time) were forced to close due to similar taxation being imposed.

In 2017 the Delaware general assembly passed several money-making bills, including one that raised the current tax on cigarettes by 50 cents. Vape businesses in Delaware can breathe a sigh of relief though, as John Carney’s 30 percent tax proposal was passed over in favor of a 5 cent per ml tax. While this will likely raise the cost of a bottle of juice by a little bit, it hopefully won’t be crushing to small businesses.

Additional information about vaping in Delaware:

Delaware passed legislation in July 2015 to ban e-cigarette use in all areas where smoking is already prohibited. According to Title 16 § 2903 of the Delaware State Code, areas that are prohibited include: public buildings, restaurants, government owned and operated buildings, grocery stores, child care facilities, and sport arenas. Though the state code does not explicitly state that ‘no smoking’ signage applies to vaping, it can be assumed that such signage does restrict vaping in those designated areas.

There are a number of e-cigarette stores to be found around Wilmington and Dover, with a smaller number also to be found throughout the rest of the state.

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