7/28/2019 Grover Norquist's Americans for Tax Reform Letter in Opposition to SB 802 (E-cigarette Tax)

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20 March 2013

Rep. Doug Cox, ChairmanOklahoma House Public Health and Social Services Committee2300 N. Lincoln Blvd.Oklahoma City, OK 73105

Dear Chairman Cox,

I write to you in reference to SB 802, which would change the definition of certaintobacco products and implement a new tax on vapor products such as electroniccigarettes.

To be sure, ATR supports the idea that some tobacco products should be taxed atlower rates that reflect their comparative risks to consumers. Vapor products are lessharmful than cigarettes, for example, and we believe their respective tax liabilitiesshould reflect that, without raising taxes on net.

Unfortunately, SB 802 levies a new tax on products that are not currently taxed inOklahoma. Some argue that vapor products will be taxed in the near future at a muchhigher rate. ATR cannot take future legislative or executive action into account whenevaluating existing proposals.

It has also been brought to our attention that by applying an excise tax to vapor products,they may be exempt from the state sales tax. This remains unclear.

Absent certification by the Oklahoma Tax Commission ruling that the sales tax would nolonger apply to vapor products, a clear fiscal note that shows a net revenue cut, or an

amendment to the bill that would ensure that the bill is at worst revenue neutral, ATR isforced to oppose this tax change despite its good intentions with respect to harmreduction.

Although ATR must oppose this particular tax change, we remain convinced thatemerging tobacco products should be taxed in a way that reflects their relative harm toconsumers.

Please contact ATR government affairs manager Josh Culling atjculling@atr.orgwith anyquestions.

Onward,

Grover G. NorquistPresidentAmericans for Tax Reform

CC: House Public Health and Social Services Committee

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