What is the tax rate and how is it affecting the price and supply of E-juices?
Earlier this month on April 1, California grouped E-juices into the tobacco product category so the excise tax that you see on many tobacco products now also applies to E-juices as well. Currently the tax rate on E-liquids/E-juice is 27% and this is going to rise to 68% this coming July. As you all may have noticed, most of the E-juice presented for sale on the website are made in California, for example the Naked 100 brand is one of our popular offerings, and the price from the wholesale side has gone up by $0.50 and will probably go up another dollar coming this July.
The impact of the tax on the prices of Naked 100 E-juice is not as bad since the manufacturer is splitting the tax cost with their distributors, while other E-juice companies such as Cuttwood are not splitting any costs with distributors so their prices are going thru the roof, even to the extent that many suppliers who used to consistently stock Cuttwood juice no longer will stock Cuttwood because it’s price point is too high compared to other E-juice brands that are currently in the market. Another example of this price rise is one of our more popular E-juices which is Loaded Glazed donuts by Ruthless, the price of the E-juice has gone up by $2.00 and will go up another $2.50 in July, so when July comes around, we will see the retail price of this E-Juice rise to be around $26 to $30 at the retail level, and in our opinion, many people will not be willing to pay that much for a 120 ml bottle of E-juice when there are many other cheaper options on the market.
We at Expivape.com will try our best to keep our prices as low as possible as long as we can, we will even try to eat some of the tax cost in order to keep our low prices. We will keep you updated on a monthly basis regarding how the regulations are changing the vape industry from manufacturer level all the way to the consumer level.