How Much Is Vape Tax in Wisconsin? A Quick Guide
If you’re a vaper in Wisconsin, you may be wondering how much tax you’ll have to pay on your favorite e-juice. As of July 1, 2023, the tax rate on vapor products in Wisconsin is 5 cents per milliliter of liquid or other substance, according to the Wisconsin Department of Revenue (DOR) (source). This includes any product that’s sold, offered for sale, possessed with the intent to sell, or removed for consumption or other disposition.
The tax applies to both distributors and retailers, and it’s based on the volume listed by the manufacturer. If you sell or ship untaxed vapor products to retailers in Wisconsin, you’ll be subject to the tax. The same goes for retailers who sell or ship untaxed vapor products to consumers in Wisconsin (source). However, if you’re a consumer who buys vapor products for personal use from a retailer in Wisconsin, you won’t have to pay any additional tax beyond the purchase price.
Understanding Vape Tax
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If you are a vaper in Wisconsin, it is important to understand how much you will be paying in taxes for your vape products. The Wisconsin Department of Revenue (DOR) imposes an excise tax on vapor products, which includes e-cigarettes and e-liquids.
The tax rate for vapor products in Wisconsin is 5 cents per milliliter of liquid or other substance heated to produce vapor for inhalation, regardless of whether the liquid or other substance contains nicotine. This tax is based on the volume listed by the manufacturer, and at a proportionate rate for any other quantity.
It is essential to note that the tax applies to the sale, offering or exposing for sale, possession with intent to sell, or removal for consumption or other disposition for any purpose of vapor products. So, if you are a retailer, you are required to collect the tax from your customers and remit it to the DOR.
It is also worth mentioning that the DOR has provided a Vapor Products Tax FAQ page on their website, which addresses some of the common questions regarding the tax. You can find more information on the DOR website.
Here is a summary table of the vape tax rates by state as of July 1, 2023, according to the Tax Foundation:
| State | Tax rate (per mL) |
|---|---|
| Delaware | $0.05 |
| Kansas | $0.05 |
| North Carolina | $0.05 |
| Wisconsin | $0.05 |
| Louisiana | $0.15 |
As you can see, Wisconsin has one of the lowest vape tax rates in the country. However, it is still important to be aware of the tax and how it affects your purchases.
Wisconsin’s Vape Tax Rate
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If you are a vaper in Wisconsin, you may be wondering how much you will have to pay in taxes for your vaping products. As of October 1, 2019, Wisconsin imposes an excise tax on vapor products. The tax rate is 5 cents per milliliter of liquid or other substance heated to produce vapor for inhalation, regardless of whether the liquid or other substance contains nicotine.
It is important to note that the Wisconsin Supreme Court ruled in Bartlett vs. Evers that vapor products definition does not include the changes made by Governor Evers. This means that if you have been paying vapor products tax on containers of bulk liquids that are intended for refilling reusable vaping devices, you may be able to get a refund.
Out of the states that do tax vaping products, Wisconsin’s vape tax rate is relatively low. Delaware, Kansas, Louisiana, North Carolina, and Wisconsin all share the lowest rate per milliliter (mL) at $0.05 per mL. However, Louisiana has the highest rate per mL in the country after tripling its rate from $0.05 per mL to $0.15 per mL in 2023.
If you are a retailer who purchases tobacco products from sources outside Wisconsin that do not hold a Wisconsin distributor permit, you must have a permit to handle tobacco products. If you handle tobacco products at the wholesale level in Wisconsin as a distributor or subjobber, you must also have a permit to handle tobacco products.
Overall, Wisconsin’s vape tax rate is relatively low compared to other states that tax vaping products. However, it is important to stay up-to-date with any changes in the tax rate or regulations to avoid any potential penalties or fees.
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Comparing Vape Tax Rates
If you live in Wisconsin and are wondering how much you’re paying in vape taxes compared to other states, this section will provide you with some useful information.
Wisconsin vs. National Average
According to the Tax Foundation, Wisconsin has one of the lowest vape tax rates in the country. As of 2023, the state imposes a tax of $0.05 per milliliter of liquid or other substance used in vapor products. This rate is the same as in Delaware, Kansas, North Carolina, and Louisiana.
In comparison, the national average vape tax rate is $0.29 per milliliter. This means that Wisconsin’s vape tax rate is significantly lower than the national average.
Wisconsin vs. Neighboring States
If you’re curious how Wisconsin’s vape tax rate stacks up against neighboring states, here’s a quick breakdown:
- Illinois: $0.15 per milliliter
- Iowa: $0.50 per milliliter
- Michigan: $0.24 per milliliter
- Minnesota: 95% of wholesale value
- Wisconsin: $0.05 per milliliter
As you can see, Wisconsin’s vape tax rate is significantly lower than those of its neighboring states. In fact, Wisconsin has the lowest vape tax rate of any state in the region.
Overall, if you’re a vaper in Wisconsin, you can take comfort in the fact that you’re paying one of the lowest vape tax rates in the country.
Effect of Vape Tax on Consumers
If you are a consumer of vaping products in Wisconsin, you have probably noticed that the cost of these products has increased since the enactment of the vape tax. As of October 1, 2019, an excise tax is imposed on vapor products in Wisconsin. The tax is based on the volume of liquid in the product, with a rate of $0.05 per milliliter (mL) of nicotine-containing liquid.
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This means that the more liquid a product contains, the higher the tax will be. For example, a 30 mL bottle of e-liquid that contains nicotine will be subject to a tax of $1.50. This tax is in addition to any other taxes or fees that may be imposed by local or state governments.
The effect of the vape tax on consumers is that they will have to pay more for their vaping products. This may make it harder for some people to afford these products, which could lead them to either quit vaping or switch to cheaper, lower-quality products. However, it is important to note that the tax revenue generated by the vape tax is used to fund important programs and services in Wisconsin, such as education and healthcare.
If you are a consumer of vaping products in Wisconsin, it is important to be aware of the vape tax and how it affects you. You can minimize the impact of the tax by purchasing smaller bottles of e-liquid or by switching to lower-nicotine products. Additionally, you can support efforts to reduce the tax burden on consumers by contacting your elected representatives and advocating for lower taxes on vaping products.
Effect of Vape Tax on Businesses
If you are a distributor of vaping products in Wisconsin, you will be subject to the vapor products tax. This means that you will need to pay an excise tax on all vapor products that you sell in the state. The tax is calculated based on the volume of the product sold, and the rate varies depending on the state.
The vape tax in Wisconsin can have a significant impact on your business. You will need to factor in the tax when calculating your prices, which could make your products less competitive. Additionally, the tax will increase your costs, which could eat into your profits.
To minimize the impact of the vape tax on your business, you may need to consider other cost-cutting measures. For example, you could try to negotiate better prices with your suppliers or find ways to reduce your operating expenses.
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It’s also important to stay up-to-date with any changes to the vape tax laws in Wisconsin. The tax rate and regulations may change over time, so you will need to be aware of any updates that could affect your business.
Overall, the vape tax in Wisconsin is something that you will need to factor into your business operations. While it may increase your costs, it’s important to comply with the law and ensure that you are paying the correct amount of tax.
Legislation Surrounding Vape Tax in Wisconsin
If you’re a vaper in Wisconsin, you may be wondering about the legislation surrounding vape tax in the state. Here’s what you need to know.
Past Legislation
In 2019, Wisconsin passed a law imposing an excise tax on vapor products received by distributors in the state. The tax rate is 5 cents per milliliter of liquid or other substance heated to produce vapor for inhalation, regardless of whether the liquid or other substance contains nicotine. This tax went into effect on October 1, 2019.
Current Legislation
As of 2023, the tax rate for vapor products in Wisconsin remains at 5 cents per milliliter of liquid or other substance. This tax is imposed on distributors in the state, not on individual consumers. The tax is collected by the Wisconsin Department of Revenue.
Future Legislation
It’s unclear if there will be any changes to the vape tax legislation in Wisconsin in the near future. However, it’s worth noting that other states have increased their vape tax rates in recent years. For example, Louisiana tripled its rate from $0.05 per mL to $0.15 per mL in 2023. It’s possible that Wisconsin could follow suit and increase its tax rate in the coming years.
Overall, if you’re a vaper in Wisconsin, it’s important to be aware of the current legislation surrounding vape tax in the state. While the tax rate is relatively low compared to some other states, it’s still something to keep in mind when purchasing vapor products.
How to Calculate Your Vape Tax
If you are a distributor of vapor products in Wisconsin, you are required to pay a tax on these products. The tax rate is $0.05 per milliliter (mL) of liquid that is sold or used in Wisconsin. To calculate your vape tax, you will need to follow these steps:
- Determine the total amount of liquid that you sold or used in Wisconsin during the reporting period.
- Multiply the total amount of liquid by the tax rate of $0.05 per mL.
- Round the result to the nearest cent.
- Report the amount of vape tax owed on your Wisconsin Distributor’s Tobacco and Vapor Products Tax Return (form TT-100).
It is important to note that you are required to pay the vape tax on all vapor products that are sold or used in Wisconsin, regardless of where the products were purchased or manufactured. This includes products that were purchased from out-of-state manufacturers or distributors.
If you are a consumer of vapor products in Wisconsin, you may also be required to pay a use tax on these products if you purchase them from someone who has not paid the vape tax. The use tax rate is the same as the vape tax rate of $0.05 per mL.
To calculate your use tax, you will need to follow these steps:
- Determine the total amount of liquid that you purchased from someone who has not paid the vape tax.
- Multiply the total amount of liquid by the tax rate of $0.05 per mL.
- Round the result to the nearest cent.
- Report the amount of use tax owed on your Wisconsin Use Tax Return (form ST-12).
By following these steps, you can ensure that you are calculating and paying the correct amount of vape tax and use tax in Wisconsin.
FAQs About Vape Tax in Wisconsin
If you’re a vaper in Wisconsin, you may have some questions about the state’s vape tax. Here are some frequently asked questions about vape tax in Wisconsin:
What is the vape tax in Wisconsin?
Effective October 1, 2019, Wisconsin imposes an excise tax on vapor products. The tax rate is 5 cents per milliliter of liquid or other substance heated to produce vapor for inhalation, regardless of whether the liquid or other substance contains nicotine.
Who is subject to the vape tax in Wisconsin?
Anyone who sells vapor products in Wisconsin is subject to the vape tax. This includes retailers, distributors, and subjobbers who handle vapor products at the wholesale level in Wisconsin.
Do I need a permit to sell vapor products in Wisconsin?
Yes, if you handle vapor products at the wholesale level in Wisconsin as a distributor or subjobber, or if you are a retailer who purchases vapor products from sources outside Wisconsin that do not hold a Wisconsin distributor permit, you must have a permit to handle vapor products in Wisconsin.
How do I report the vape tax in Wisconsin?
You can report the vape tax on your Wisconsin tax return. The tax is due on the 20th day of the month following the end of the calendar quarter in which the vapor products were sold or used in Wisconsin.
Do I owe excise tax if I purchased untaxed vapor products in Wisconsin?
Yes, if you purchased untaxed vapor products (received and/or consumed in Wisconsin), you owe excise tax. The tax is due on the 20th day of the month following the end of the calendar quarter in which the vapor products were purchased or received in Wisconsin.
Do we need to let the Wisconsin Department of Revenue know that we will be switching to XML filing?
Yes, if you are a vapor products distributor or subjobber and plan to switch to XML filing, you need to notify the Wisconsin Department of Revenue at least 30 days before the change.