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Abstract
Introduction 30 states enacted e-cigarette taxes by the end of 2023. E-cigarette tax schema in the USA vary, in contrast to cigarette taxes that are standardised as an excise tax amount per pack. Some states use excise taxes on liquid and containers, others wholesale sales taxes and others retail sales taxes. Increasingly, states are taxing open system and closed system products differently. It is therefore difficult to understand the relative magnitudes of these e-cigarette taxes and their size relative to cigarette taxes.
Objective To update and publish a database of state and local quarterly e-cigarette tax rates from 2010 to 2023, standardised as the rate per millilitre of fluid, for both closed system and open system products.
Methods Using Universal Product Code-level e-cigarette sales from the NielsenIQ Retail Scanner Data along with e-cigarette product characteristics collected from internet searches and visits to e-cigarette retailers, we develop a method to standardise e-cigarette tax rates as an equivalent average excise tax rate measured per millilitre of fluid.
Results In 2023, the average American resided in a location with $3.21 in cigarette taxes and $0.49 in closed system e-cigarette taxes (per 0.7 fluid millilitre). Among the 10 states using segmented taxation for closed and open systems, the average open system e-cigarette tax was 85% lower.
Conclusions The public availability of this updated database of state and local standardised e-cigarette tax rates will improve and expand research on effects of e-cigarette taxes on tobacco and related outcomes.
- Electronic nicotine delivery devices
- Taxation
- Economics
Data availability statement
Data may be obtained from a third party and are not publicly available. All data relevant to the study are included in the article or uploaded as supplementary information. The underlying Nielsen Retail Scanner Data that we use in our paper is available with a contract from the Kilts Center at the University of Chicago. We use those underlying data in our standardised tax measures. We make these standardised tax measures publicly available as part of this publication.
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Data availability statement
Data may be obtained from a third party and are not publicly available. All data relevant to the study are included in the article or uploaded as supplementary information. The underlying Nielsen Retail Scanner Data that we use in our paper is available with a contract from the Kilts Center at the University of Chicago. We use those underlying data in our standardised tax measures. We make these standardised tax measures publicly available as part of this publication.
Footnotes
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Contributors Concept and design: MFP. Acquisition, analysis or interpretation of data: CC, EN, MFP, SP. Drafting of the manuscript: MFP. Critical revision of the manuscript for important intellectual content: CC, EN, MFP, SP. Obtained funding: MFP. Administrative, technical or material support: SP. Supervision: MFP. Guarantor: MP.
Funding Research reported in this publication was supported by the National Institute on Drug Abuse of the National Institutes of Health under award numbers R01DA045016 and R01DA058005, and by the National Cancer Institute and Food and Drug Administration Center for Tobacco Products under award number U54CA229974.
Disclaimer Sponsors had no role in the design and conduct of the study. The content is solely the responsibility of the authors and does not necessarily represent the official views of the National Institutes of Health or the Food and Drug Administration.
Competing interests MP and SP are supported in their work on this manuscript by R01DA045016, R01DA058005 and U54CA229974 from the National Institutes of Health and the Food and Drug Administration. Over the past 3 years, the authors report funding from the National Institutes of Health (MP and SP), American Cancer Society (MP and SP), Food and Drug Administration (MP and SP), Health Canada (MP), University of Kentucky Institute for the Study of Free Enterprise (MP), Rhizome (SP), the United South and Eastern Tribes (CC) and the American Civil Liberties Union (CC). CC and EN have also recently collaborated on a working paper published by the National Bureau of Economic Research for which other authors received salary support from Global Action to End Smoking.
Provenance and peer review Not commissioned; externally peer reviewed.
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