NORTH CAROLINA: McCrory signs law taxing e-cigs - WSPA.com

McCrory signs law taxing e-cigs

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Daryl Cura demonstrates an e-cigarette at Vape store in Chicago. (AP Photo/Nam Y. Huh) Daryl Cura demonstrates an e-cigarette at Vape store in Chicago. (AP Photo/Nam Y. Huh)
RALEIGH, N.C. -

A new tax law signed Thursday by Gov. Pat McCrory imposes an excise tax on the fluid used in electronic cigarettes.

The law is written to include vapor under the the definition of tobacco products. It imposes a tax of $0.05 per milliliter of vapor.

Rep. Becky Carney, who is part of the Revenue Laws Study Committee, said the tax is expected to generate $2 million in the 1014-15 fiscal year.

Tobacco giant Reynolds American had supported the tax, arguing that e-cigarettes should have a "fair and reasonable" excise tax similar to other tobacco products. For comparison, a regular pack of cigarettes has a 45 cent per pack excise tax.

E-cigarettes do not contain tobacco and emit a vapor instead of smoke.

The law further prohibits the use of e-cigarettes in jails.

Supporters say e-cigarettes are a way for smokers to avoid some of the problems associated with traditional tobacco.

The FDA is still assessing how to regulate the product.

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