September 3, 2019
The Department of Revenue (DOR) is seeking the assistance of the Tavern League of Wisconsin in informing your members about the imposition of the new tax on vapor products in Wisconsin. We expect that your members have questions about the new tax and we want to provide answers.
· Effective October 1, 2019, Wisconsin law (sec. 139.76, Wis. Stats.) imposes an excise tax on vapor products in Wisconsin.
· The tax rate is 5 cents per milliliter of liquid or other substance heated to produce vapor for inhalation, regardless of whether the liquid or other substance contains nicotine. The tax is due at the time of receipt of untaxed product in the state.
What businesses are subject to Wisconsin's vapor products tax?
Businesses subject to this tax include any business selling or shipping untaxed vapor products in Wisconsin.
The tax is primarily owed by distributors, but may also be owed by manufacturers that sell to retailers, and retailers that purchase untaxed vapor products for sale to consumers.
What products fall under Wisconsin's vapor products tax?
Liquids, gels and other substances—containing nicotine or not—that are used in vaping are subject to the vapor products excise tax. The tax is 5 cents per milliliter of the substance. It is important to note that vaping equipment and devices containing liquid, gel and other substances are subject to the tax, while vaping equipment and devices not containing the liquid, gel or other substance are not subject to the tax.
Is a vapor products retailer required to obtain a cigarette and tobacco products retailer license?
No, vapor product retailers that do not sell cigarettes or tobacco products are not required to obtain municipal cigarette and tobacco products retail licenses. However, retailers selling untaxed vapor products are required to have a DOR-issued tobacco/vapor products distributor permit. The application permit is Form CTP-129.
Attached is an informational flyer that can be distributed to your members. For more information on Wisconsin's vapor products excise tax, visit www.revenue.wi.gov and search keyword "vapor." Thank you for your assistance.