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North Carolina to Tax Vapor Products

  • May 13, 2015 | Gail Cole

Vapor products will soon be just another taxed tobacco product in North Carolina. Beginning June 1, 2015, they will be subject to an excise tax of five cents per fluid milliliter of consumable product. As with sales and use tax, the new excise tax must be reported and filed monthly.

What it is

A vapor product is defined as follows:

“Any nonlighted, noncombustible product that employs a mechanical heating element, battery, or electronic circuit regardless of shape or size and that can be used to produce vapor from nicotine in a solution. The term includes any vapor cartridge or other container of nicotine in a solution or other form that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.”

A consumable vapor product is defined as follows:

A consumable vapor product is any nicotine liquid solution or other material containing nicotine that is depleted as a vapor product is used. This includes prefilled tanks used in rechargeable and non-rechargeable (disposable) vapor products.

Who pays

Under N.C. Gen. Stat. § 105-113.35(b), “the wholesale dealer or retail dealer who first acquires or otherwise handles the vapor product, brings the vapor product into this State, or is the original consignee of the vapor product that is made outside this State and shipped into this State is liable for the excise tax on or after June 1, 2015.”

North Carolina Department of Revenue.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.