Posts by Steve:
This is just one example of a vaping tax failing miserably due to the reasons that we express to all of our elected representatives.
A county’s experiment in e-cigarette taxes has resulted in a massive failure, with the amount of money the Council expected to raise falling short by 75-85 percent. Maryland’s Montgomery Council passed 30 percent tax on the wholesale price of e-cigarettes in May 2015.
“The County Commission’s desire for more tax revenue came together with a lack of drive on the part of the sponsors to actually study the market they were targeting. These combined forces resulted in a revenue estimate that was wildly overestimated. The budget hole created by this tax under-performing will likely leave Montgomery County residents on the hook come tax time.”
Not only did it fail to deliver on the revenue estimates provided by the bill’s sponsors, the county had budgeted based on sponsor’s estimates and is now left with the task of replacing the already-budgeted funds with money from elsewhere in the system.