Navigating 2024 Vape Excise Tax Changes: What Do Hawaii and Nebraska Mean for Your Business?

Why Should Vape Merchants Worry About Hawaii and Nebraska Excise Tax Changes?

As we gear up for 2024, vape industry e-commerce merchants face significant excise tax adjustments in Hawaii and Nebraska. Wondering how this impacts your business? Let’s break it down.

What’s Up with Hawaii’s Act 62?

Effective Date: January 1, 2024

  • Hawaii Excise Tax Rate:  Brace yourself for a hefty 70% of the wholesale price.
  • New Definitions: “E-liquid” and “electronic smoking device” get added, expanding “tobacco products.”
  • License Updates: Wholesalers and dealers now need a $250 annual cigarette and tobacco license. Retailers must secure a retail tobacco permit, specifying what they sell.

Nebraska: What’s Changing with Revised Statute 77-4008?

Effective Date: January 1, 2024

  • Nebraska Excise Tax Rates: $0.05 per ml for ENDS with 3 ml or less; 10% of wholesale price for more than 3 ml.
  • Licensing in Nebraska: No selling without a Nebraska license! Violation means a Class III misdemeanor.

How Token of Trust Help Your Business

Curious about a smoother transition into 2024? Token of Trust has you covered.

  • Automated Vape Excise Tax Calculation: Stay compliant effortlessly.
  • PACT Act Reporting and Compliance: Simplify reporting duties.
  • Age Verification Services: Ensure your customers meet legal age requirements.

Ready for a seamless 2024? Reach out to Token of Trust for tailored solutions that keep you compliant and focused on your success.

For more information from each state, contact the Hawaii Department of Taxation at (808) 587-1530 and the Nebraska Department of Revenue for tobacco-related matters at (402) 471-2571.

Disclaimer: This blog serves as a general guide. Merchants are advised to consult with legal and compliance professionals for specific guidance tailored to their business.