The Liquid Nicotine Product Tax is imposed on the retail sale of liquid nicotine products in the City.
Retailer & Wholesaler Requirements
Retailers
All retailers of liquid nicotine products must file a Floor Tax return on or before January 25, 2016.
Wholesalers
All wholesalers of liquid nicotine products must register with the Department of Finance to begin collecting the tax on January 1, 2016.
Electronic Cigarettes: A Modern Alternative
Electronic cigarettes are still a novelty. The concept of using liquid nicotine instead of real tobacco captures a lot of attention from all age groups.
This in fact is a special solution of liquid nicotine which can be easily vaporized by a small heating element.
Nicotine Content & Safety
The e-liquid or liquid nicotine contains anywhere from 2.4% to 0% nicotine, which helps:
Eliminate the chances of accidental spills
Prevent swallowing of the liquid itself
The cartridges usually contain 16 to 24 milligrams of nicotine, which is significantly less than the 40 to 60 milligrams typically found in a traditional cigarette.
Common Liquid Bases
Two common bases used in liquid nicotine delivery (especially in e-cigarettes) are:
Propylene Glycol
Vegetable Glycerine
These may sound alarming, but they are naturally derived compounds commonly used in products such as:
Soaps
Food
Lubricants
The propylene glycol used in e-liquids is classified as safe for human consumption by the FDA and is commonly found in a variety of food products, pharmaceuticals, and cosmetic items.
Frequently Asked Questions
What is the Liquid Nicotine Product Tax?
The Liquid Nicotine Product Tax is a local tax applied to the retail sale of liquid nicotine products within the city limits. It is part of a regulatory effort to oversee and manage the sale of e-cigarettes and related products.
Who is required to file a Floor Tax return?
All retailers selling liquid nicotine products must file a Floor Tax return by January 25, 2016. This ensures that taxes are collected on any inventory held at the start of the tax’s implementation.
When did wholesalers need to register for tax collection?
Wholesalers of liquid nicotine products were required to register with the Department of Finance to begin collecting the tax as of January 1, 2016.
What are common ingredients in liquid nicotine products?
Liquid nicotine is typically made using propylene glycol or vegetable glycerine as its base. These ingredients are also found in common household products like soaps, food items, and cosmetics, and are considered safe for human consumption.
How does the nicotine content in e-cigarettes compare to traditional cigarettes?
E-cigarettes generally contain between 16 to 24 milligrams of nicotine per cartridge, which is significantly lower than the 40 to 60 milligrams found in traditional tobacco cigarettes. This variation supports safer use and lower exposure levels.
