South Carolina legislators are deliberating a bill to impose taxes on vaping and heated tobacco products. The Senate panel advanced the proposal that would cut taxes on heated tobacco products to half of that on traditional cigarettes, despite opposition from health organizations.
Heated tobacco products, currently unavailable in South Carolina stores due to a pending patent lawsuit, mimic the appearance of vapes but use actual tobacco rather than liquid nicotine. These products are authorized for sale in other states, such as Florida and Texas. Proposed legislation sets a tax rate of 28.5 cents per pack of 20 heated tobacco products, while traditional cigarettes are taxed at 57 cents. Additionally, a new tax of 5 cents per milliliter on vaping liquid is under consideration.
The reduced tax on heated tobacco could generate around $7 million annually, contingent on product availability, while the vaping tax may raise about $14 million, benefiting the Medicaid Reserve Fund. A related bill by Sen. Tom Davis aimed to tax heated tobacco at just 5% of the cigarette rate, as its manufacturer claims these products inflict only 5% of the harm.
The Food and Drug Administration regulates the sale of heated tobacco as modified risk products, allowing claims of reduced exposure to harmful chemicals for those fully switching from cigarettes. Nevertheless, the Centers for Disease Control and Prevention emphasize more research is needed, as the risks of related diseases are not mitigated by these products.
South Carolina, a historic tobacco-growing state, retains one of the lowest cigarette taxes in the nation, ranking fourth after a 2010 increase. Health advocates continue to challenge industry-funded studies suggesting heated tobacco aids smoking cessation, noting many users still smoke traditional cigarettes.
