Tag: Guam

  • Guam Governor Vetoes “Confusing” Vape Tax

    Guam Governor Vetoes “Confusing” Vape Tax

    Credit: Oleksii.

    Guam’s Governor Lou Leon Guerrero on Monday vetoed a bill that seeks a 10 percent tax on vaping and electronic nicotine products.

    The governor stated that she does not object to taxing electronic nicotine delivery systems (ENDS) to include vape products in her veto letter for Sen. Joe San Agustin’s Bill 193-37.

    “It makes sense to implement a common-sense taxing structure on ENDS products,” she wrote.

    The governor said the tax scheme in the bill would cause “unnecessary confusion and inefficiency.”

    She said the tax would apply to retail sales of vaping and nicotine products, adding the cost directly to customer receipts in a way no other product on Guam is taxed, according to media reports.

    Guam’s 2006 Tobacco Control Act already allows for vaping and nicotine products to be taxed at the same wholesale level as “electronic cigarettes,” the governor writes.

    Leon Guerrero stated that senators should instead direct the Department of Revenue and Taxation to create rules for assessing the taxation of vaping and electronic nicotine products and extend existing tobacco taxes.

    Guam law provides a sin tax of $4 per pack on cigarettes, though it’s unclear how the tobacco tax would be extended to vaping products.

    A majority of 12 senators voted to pass Bill 193-37, enough to overcome the governor’s veto if support holds.

  • Bill to Ban Flavored Nicotine in Guam Gets Short Pause

    Bill to Ban Flavored Nicotine in Guam Gets Short Pause

    Credit: Rarrarorro

    A bill aimed at prohibiting the sale of flavored tobacco products on Guam was withdrawn after the public hearing did not move forward.

    Due to lawmakers spending a large amount of time discussing Bill 175-37, which proposes changes to Guam’s Toilet Facilities and Sewage Disposal Act, the next scheduled public hearing for Bill 50-37 had been withdrawn by its sponsor, Sen. Thomas Fisher.

    Bill 50 sought to prohibit the sale of flavored vaping and other tobacco products on Guam, according to media reports.

    Fisher explained he withdrew Bill 50 to make changes after receiving information from the American Cancer Society.

    Fisher further intended to refile the bill immediately with the hope of having a public hearing on the bill Jan. 11.

    Last year, lawmakers in Guam proposed to impose a 10 percent excise tax on all vape products for the first year, and then raise it to 20 percent on the second year.

    Guam currently has no standardized tax regulations for what the bill describes as electronic nicotine-delivery systems (ENDS).

  • Guam Leaders Propose Excise Tax Rules for Vapes

    Guam Leaders Propose Excise Tax Rules for Vapes

    Credit: Sezerozger

    Lawmakers in Guam are proposing to impose a 10 percent excise tax on all vape products for the first year, and then raising it to 20 percent on the second year.

    Guam currently has no standardized tax regulations for what the bill describes as electronic nicotine-delivery systems (ENDS).

    The bill, if enacted into law, will make the taxation for vape products separate from the existing tobacco retail category.

    They do not include regulated cannabis products, according to Pacific News Daily.

    Sen. Joe San Agustin and three other Democrat and Republican senators proposed the new rules. San Agustin, chairman of the appropriations committee, said the proposed tax on ENDS products came after realizing the loss of millions in revenues in the Healthy Futures Fund where it showed major shortfalls in revenues from tobacco taxes.

    Under Bill 193-37, or the ENDS Excise Tax of 2023, the tax will be imposed on all ENDS products at the point of sale and will be made visible as a line item on the receipt.

    Under the bill, the annual retail license will be $200, and the annual wholesaler license will be $2,000.