The Arizona Legislature’s budget analysts say a tax on electronic cigarettes could bring $6 million a year in new revenue into the state’s coffers.
The analysis released by the Joint Legislative Budget Committee bases that figure on taxing the nicotine vapor smokes at the same ratio as the current $2 per pack tax on regular cigarettes.
The analysts say the number could be as low as $284,000 a year or as high as $13.5 million a year if the Legislature adopts other rates.
Some lawmakers looking for ways to close a budget deficit estimated at $1 billion are floating a plan to tax the new products. But the proposal also faces opposition from lawmakers who believe a tax could discourage people from using e-cigarettes to quit smoking regular tobacco.