Some Delaware E-Cigarette Businesses Fear Losing Competitive Edg - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Some Delaware E-Cigarette Businesses Fear Losing Competitive Edge Because of Possible Taxes

Posted: Updated:

SEAFORD, Del. -- Some business owners in the e-cigarette industry are concerned about a proposal in Delaware Gov. John Carney's budget plans that call for classifying e-cigarettes under a taxable category of tobacco products.

The plan was part of Carney's budget proposal, unveiled last month in Dover, and contributed a relatively small chunk to an estimated $16 million in revenue from increased taxes on cigarettes and other tobacco products.

Under the plan, Delaware would raise a 15 percent excise tax on the wholesale price of "Other Tobacco Products" to 30 percent. E-cigarettes would be reclassified to fall under that category, as would moist snuff products.

But Dave Eisenhour, owner of the Delmar Vapor Lounge chain, said he was unhappy with the idea because it could eat into revenue used to pay employees and the cost of paying tax on products would trickle down to consumers in the form of price increases. 

"If our prices are higher than that, it's going to be very difficult for us to compete with the Internet, especially, and our neighboring states such as Maryland and New Jersey, which do not have taxes on e-cigarette products," he said.

Delaware's Department of Finance said it expects e-cigarette tax revenue to be an estimated $200,000 in fiscal year 2018, then $400,000 in fiscal year 2019.

  • Most Popular VideosMost Popular VideosMore>>

  • Hoopers Island Catches Large Bull Shark

    Hoopers Island Catches Large Bull Shark

    Captain Boo Powley has an eight and a half foot long bull shark, caught in his net this weekend.More
    Captain Boo Powley has an eight and a half foot long bull shark, caught in his net this weekend.More
  • Plant Turning Chicken Poop Into Energy Comes to Georgetown

    Plant Turning Chicken Poop Into Energy Comes to Georgetown

    A new renewable energy plant is coming to the Georgetown area next year. Though people who live nearby worry the new plant will bring increased traffic and a strong odor along with it. 

    The plant, owned by CleanBay Renewables will recycle 90,000 tons of chicken litter annually, and transport nearly 300 tons daily.

    More

    A new renewable energy plant is coming to the Georgetown area next year. Though people who live nearby worry the new plant will bring increased traffic and a strong odor along with it. 

    The plant, owned by CleanBay Renewables will recycle 90,000 tons of chicken litter annually, and transport nearly 300 tons daily.

    More
  • Demand for Teachers on Delmarva Is On the Rise

    Demand for Teachers on Delmarva Is On the Rise

    Director of Human Resources for Wicomico County Public Schools says he's down several teachers. Laurie Henry, the Dean of the Siedel School of Education at Salisbury University, gave WBOC data showing the decline of enrolling education students.

    More

    Director of Human Resources for Wicomico County Public Schools says he's down several teachers. Laurie Henry, the Dean of the Siedel School of Education at Salisbury University, gave WBOC data showing the decline of enrolling education students.

    More
Powered by Frankly

All content © Copyright 2000 - 2018 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices