Wow. I’m stunned to be honest. Kingdom Vapor has emerged victorious in its fight against the Commonwealth of Pennsylvania, and has defeated the outrageous 40% wholesale tax that has ravaged vape shops throughout the entire state.
This article here by Kingdom Vapor details the entire reason behind the fight, and their inevitable plan to victory. To put it in short, in 2016 the state of PA added a 40% flat tax on all “tobacco” products. Of course, because according to the federal government, vaping products are deemed tobacco, they fall in the category. The idea by the government was to increase tax money to use towards the betterment of the state. But as we know, the corrupt politicians in offices around the country use these “taxes” – or as I like to put it, stolen funds – to line their own pockets and the pockets of their friends. Since 2016, I’ve personally seen shop after shop go under, including friend and guest on InTheMix Podcast Chris Hughes’ own shop, Fat Cat Vapor. Not only that, but the amount of money actually generated from these new taxes was actually LESS than the taxes received normally.
But during this time, Kingdom Vapor was stacking its cards to fight against this new initiative. The grounds for the fight was
“Kingdom Vapor Wholesale…realized that the PA DOR had in fact wrongfully interpreted the TPTA law of 2016, and approached a local law firm. Through meeting with Lindsay Law Firm of Butler Pennsylvania, and getting their interpretation of the TPTA 2016 law, it was agreed that the PA DOR was wrongfully taxing Businesses in PA as well as PA consumers of these products and Suit was filed on December 20th, 2016”
And after almost two years, on June 22nd, 2018, the 7 judges in the hearing awarded the win to Kingdom Vapor. Now to put it simply, E-liquid and complete hardware kits are still taxed at 40% on all levels, including wholesale. But “components” sold separately are now free of that tax burden. A great win in a time where wins are much needed. – Unfortunately, the state holds the power to revise and reverse this should they see fit. The fight always continues.