E-cigarettes are the only tobacco product sold in Kentucky that is not subject to an excise tax. That changes Saturday.
Earlier this year, Kentucky lawmakers approved House Bill 351 that included an excise tax on vapor products. In addition to the state’s 6 percent sales tax, an excise tax will be imposed on closed and open vaping systems, according to Kentucky.com. Kentucky will now charge $1.50 on each closed cartridge or pod and 15 percent of the actual price for which the distributor sells an open system.
The new excise tax on vaping products is expected to generate about $7.9 million for the state this fiscal year and slightly more in coming years since the tax did not start on July 1, the beginning of this fiscal year.