Vape Excise Taxes Overview
States, counties and cities formulate excise taxes in a variety of ways. We handle each style of tax in a different way. Below you will find details about how each kind of tax is treated.
Percentage Basis Taxes
These taxes specify a percentage and a basis. The basis values we can use are:
- Wholesale Cost
- Wholesale Price
- Retail Price
- MSRP
Each of these are required in our Product Metadata
For Excise Tax Collection in ecommerce checkout we can also use the Checkout Price and Discounted Checkout Price as the basis for percentage basis taxes.
Per Unit Taxes
These are taxes that charge a flat amount per unit of applicable products
Per mL Taxes
Many jurisdictions have implemented a flat rate tax per mL of vaporize ejuice sold. We collect the number of mL of ejuice in our Product Metadata.
Handling fractional amounts
For products that have a fractional amount of ejuice (i.e. 10.5 mL) our system rounds down be default to ensure that taxes are charged for each full mL of ejuice.