Below is the testimony I submitted to the Mn House of Representatives Tax Committee on 4/20/2015.
Mr. Chairman and Members of the Tax Committee,
Today I am
reaching out to you as a Mom, a daughter, a wife, and a granddaughter. I
am not an officer of any Vaping Advocacy group, Vaping trade
association, or a business owner in the industry.
I am VERY
concerned about the proposed new tax on the e-liquids used by the vaping
industry. The amendment to HF848, specifically Article 7, Sections 4 – 6
and 8-12 is terrible for Minnesota vapers, terrible for Minnesota small
businesses and would provide a major advantage to products offered by
companies like R.J. Reynolds, Altria and Lorillard (aka “Big Tobacco”).
My Grandpa died from heart failure caused by years of smoking. My
Grandma died from cancer after years of breathing second hand smoke. The
next victim in my family of the tobacco industry was my Mom. I sat with
her as I heard the last breath leave her body. She died from heart
failure AND cancer - after smoking her whole adult life. For the past 5
years I have watched my husband get more and more depressed as his daily
activities are limited because he struggles to breath from COPD, caused
by years of smoking. My 29 year old son almost died last year, another
smoking victim from a 2 pack a day smoking habit. All of what family I
have left have now quit smoking, thanks to vaping.
I am TIRED. I
am tired of losing my loved ones too soon because of smoking. I am tired
of cutting short family activities and holidays or cancelling them all
together because of peoples health issues caused by smoking. I am tired
of taking time away from my family so I can fight unfair state, county,
and city laws that limit or prohibit peoples ability to vape.
Last night I listened to the online recording of the testimony from last
weeks informational hearing before the House Tax Committee. I find it
frustrating that time for testimony was so limited when this issue is so
important to the citizens and businesses of Minnesota. A decision that
effects so many people should be given more time to be researched and
discussed. I do not believe that we should be hasty in burdening people
with additional taxes without doing due diligence in making sure we are
making the right choice for the people of our state.
I’d like to
touch on a couple of points made by people who supported the new tax at
last week’s hearing. I have to be suspicious of bringing in heavy
hitters from out of state to speak in favor of a tax that effects the
people of our state! I ponder what their motivation is, to be so
concerned about our citizens?
Mr. Ampolini came from out east. He
is the President of RJ Reynolds Vapor Company. He has had a long and
successful career working for Big Tobacco. He and other big tobacco
companies manufacture the closed type of systems of e-cigs. The kind
with cartridges that the consumer has no control of. Their products look
like a cigarette, taste like a cigarette, are held like a cigarette,
and mimic smoking a cigarette. As an ex-smoker, many vapers do not want
anything to do with these types of products. They are too much like a
cigarette. The taste and feel of them are no longer appealing to us. Mr.
Ampolini led the members of the Committee to believe that this tax is
needed to make the taxes on his closed system equitable to the open type
of systems sold by vape shops and used by most vaping consumers. This
is like comparing apples to oranges. He appeared very knowledgeable
about closed systems, but his facts on open systems was lacking and the
information he presented to the committee was inaccurate. He claimed
that at 30 milliliter bottle of e-liquid would last the consumer 60
days, because he used the amount of e-liquid used in his product and
assumed the same amount would be used by any vaping product. This is NOT
true. A 30 mil bottle of e-liquid lasts the average consumer 2-7 days,
not 60 days. Add an additional $9.00 to a bottle of e-liquid and you are
putting vaping back in the category of being as expensive or more
expensive than smoking combustible cigarettes. Being as many people turn
to e-cigs to quit smoking based on health AND financial motivation,
increasing the cost of vaping takes away the motivation for smokers to
quit for financial reasons. Less people quitting is returning many
families back to dealing with the health issues of smoking and second
hand smoke. Mr.Apolini said that a merchant can buy a gallon of e-liquid
for $150 and turn it into a $10,000 profit. I don’t have a clue where
he got his numbers from, but after talking to several Minnesota vape
shops, not a one of them could give me a number even close to that. I
know if I could make that kind of money, I’d be the next person jumping
on the small business band wagon and opening my own vape shop. WOW, what
an amazing profit margin that would be!!!!!!
Allen Smith of Ohio
also paid our state a visit to speak in favor of this increase in taxes
for Minnesota citizens. He gave some excellent points about harm
reduction, and vaping being better than smoking. He felt that taxing
e-liquid at a rate less than traditional tobacco products would be a
good thing. And it would be IF it lowered the cost of e-liquids, not
raised them. This tax raises the cost for the type of product used by
the majority of vapers in Minnesota, as most Minnesotans don’t use they
type of systems that would see a decrease in tax.
The other
speaker in favor of the tax was from the Minnesota Wholesalers Marketing
Association. He felt this new tax would help the businesses he
represents sell more product, as many of them sell the closed systems
made by big tobacco. Why do we want to sell more of the products made by
big tobacco? The folks who have cost the people of our country billions
of dollars in health care and funeral costs? I do not believe that if
big tobacco had their tax lowered, they would pass those cost savings on
to their consumers who are already used to paying the current tax. Big
tobacco could keep the cost the same, pay less tax and increase their
profit margins. I think the gentleman from this association should do a
little research. It is not the cost of the systems from big tobacco that
chases consumers away, it is the product that doesn’t appeal to many
vaping consumers. Consumers prefer the open systems, sold to them by
small businesses all over the state. They prefer to use e-liquid made by
Minnesota manufacturers.
Lets keep Minnesotans employed. Lets
support Minnesota businesses. Lets continue to keep vaping affordable so
more Minnesotans quit smoking and lead a healthier lifestyle. Lets be a
leader on this and set an example for the rest of the country!
Supporting Big Tobacco and helping them make more money is NOT
Minnesota’s responsibility. Taking care of our own is our
responsibility!
I want to stop being tired. I don’t want to loose
any more family to smoking. I don’t want to worry about unfair taxes.
If I have to be tired, I want to be tired because I’ve had a wonderful
day with my family, because I did something to improve education,
because I’ve helped a homeless person find a home, because I made the
trip across town to support a Minnesota business.
Please vote NO
to the amendment to HF848, specifically Article 7, Sections 4 – 6 and
8-12, it’s a mistake to do this to Minnesota and its citizens!
I Vape and I Vote - and I'm proud to be the newest NON-SMOKER in my family!!!!!
(Click here to read what happened AFTER 40 people testified AGAINST the tax)
