NORTH CAROLINA: General Assembly to consider e-cigarette tax - Local news, weather, sports Savannah | WSAV On Your Side

NC to consider new e-cigarette tax

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Daryl Cura demonstrates an e-cigarette at Vape store in Chicago. (AP Photo/Nam Y. Huh) Daryl Cura demonstrates an e-cigarette at Vape store in Chicago. (AP Photo/Nam Y. Huh)
RALEIGH, N.C. -

The Republican-dominated North Carolina General Assembly will consider a new tax on electronic cigarettes.

A panel that studies tax matters recommended Tuesday that the proposal be introduced during the legislative session that starts Wednesday. Support is coming from an unlikely source in tobacco giant Reynolds American, based in Winston-Salem.

Company Vice President David Powers says Reynolds asked for the tax to ensure that it would be handled fairly. The proposed tax is significantly lower than those being considered in other states.

Electronic cigarettes do not contain tobacco and emit a vapor instead of smoke. They would be taxed at a much lower rate than a regular pack of cigarettes, which has a 45 cent per pack excise tax.

Rep. Becky Carney, who is part of the Revenue Laws Study Committee, said the tax amounts to $0.05 per milliliter of vapor and is expected to generate $2 million in the 1014-15 fiscal year.

Copyright 2014 The Associated Press. All rights reserved.

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