Hawaii House Bill HCR151

Hawaii 2022 Regular Session

• Introduced: 3/11/22
• Refer: 3/14/22

Caption

Requesting The Department Of Taxation To Conduct A Study To Determine The Potential New Revenue For The State Resulting From A Tax On Electronic Smoking Devices.

Impact

The impetus for HCR151 stems from a perceived imbalance in the tax framework governing traditional tobacco products compared to e-cigarettes. Historically, taxes on tobacco have been a significant source of revenue for state governments, and this resolution aims to potentially align e-cigarettes with these existing tax structures. By conducting this study, the state hopes to explore new avenues for revenue that could assist in funding various public services and initiatives, particularly those related to health and education.

Summary

HCR151 is a House Concurrent Resolution from the State of Hawaii that requests the Department of Taxation to undertake a study to assess potential new revenue that could be generated from taxing electronic smoking devices, commonly known as e-cigarettes. The resolution highlights the significant increase in e-cigarette use, particularly among youth, juxtaposed with declining rates of traditional cigarette smoking. Given the rise in e-cigarette sales, the resolution underscores the necessity of examining their economic impact.

Contention

One notable point of contention could arise from differing stakeholder views on the taxation of e-cigarettes. Proponents of the tax are likely to argue that aligning e-cigarette taxation with traditional tobacco products is essential for ensuring public health and reducing youth consumption. Conversely, opponents may raise concerns about the potential impact on smokers who may use e-cigarettes as a less harmful alternative to traditional smoking. The study requested by HCR151 will thus serve as a foundational step towards informing the legislature about the possible economic and health implications of such taxation.