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Vape product excise tax begins Tuesday in Wisconsin

MADISON, Wis. - An excise tax on vape products starts Tuesday in Wisconsin.

The Wisconsin Department of Revenue said it will start collecting the excise tax from products that are "a noncombustible substance that produces vapor or aerosol meant for inhalation."

The new tax applies to businesses in the state that manufacture vapor products for sale in Wisconsin. It also applies to businesses outside Wisconsin that sell and ship products to the state for retailers and consumers.

The tax rate is 5 cents per millimeter of liquid or other substance heated to produce a vapor for inhalation. It doesn't have to contain nicotine.

The Legislative Fiscal Bureau estimated the tax could result in about $2.3 million in fiscal year 2020 and $3.2 million in fiscal year 2021. 

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