Hot Topic today: Why Tax Hike on Nicotine Products?
The North Dakota House voted down Senate Bill 2281 on Wednesday, blocking a proposed tax increase on cigarettes, vaping products, and smokeless tobacco. The legislation, which had previously cleared the state Senate, sought to:
- Raise cigarette taxes by 25 cents per pack.
- Impose higher levies on vaping devices, e-liquids, chewing tobacco, and other nicotine products.
- Direct revenue to a state tobacco distribution fund.
However, the House Finance and Taxation Committee raised concerns after reviewing the bill, arguing it could lead to double taxation on certain products and fuel black market sales. Critics, including Republican Representative Ty Dressler, slammed the proposal as “regressive,” warning it would disproportionately burden low-income residents.
Source: https://news.prairiepublic.org/local-news/2025-03-20/nd-senate-approves-changes-to-falsehood-law-in-political-campaigns
“If a tax policy was bad last month, it’s still bad today,” Dressler stated. “This bill imposes a significant tax hike that risks harming retailers, encouraging illicit trade, and stifling economic growth.”
More about the Tax Hike on Nicotine Products
The rejection reflects ongoing debates in North Dakota over balancing public health goals with economic impacts. Similar efforts to raise tobacco taxes, including a failed 2016 ballot measure, have faced resistance over fears of unintended consequences.
Earlier source:
Tobacco tax bills pending in the ND Legislature
Tax Hike on Nicotine Products? No further legislative action on the bill is expected this session.
