Wisconsin begins collecting tax on vapor products

By  | 

MADISON, Wis. (WMTV) -- The Wisconsin Department of Revenue began collecting an excise tax on vapor products in Wisconsin on Tuesday.

The DOR defines vapor products as a noncombustible substance that provides vapor or aerosol meant for inhalation.

DOR states the tax rate is five cents per milliliter of liquid or other substance heated to produce vapor for inhalation, regardless if it contains nicotine.

The tax applies to businesses that sell and ship from outside Wisconsin untaxed vapor products to retailers in Wisconsin, sell and ship from outside Wisconsin untaxed vapor products to consumers in Wisconsin, or manufacture vapor products in Wisconsin for sale in Wisconsin.

The tax is due after receiving the untaxed vapor product within the state.

The Legislative Fiscal Bureau estimated the vapor products tax could result in $2.3 million for the 2020 Fiscal Year.

For more information about the tax, click here