Californian proposal for 12.5% e-cig tax on its way to under-fire governor

A new 12.5% sales tax on e-cigarettes has been approved by the California State Legislature and now requires only the signature of governor Gavin Newsom – who is facing a recall election next week that could remove him from office.

Under Senate Bill 395 retailers will oversee the collection of the tax, which will apply from 1st July 2022. Retailers “may retain 1 percent of the tax” as reimbursement for costs associated with the collection process.