Tennessee lawmakers are pushing forward with a new vape tax proposal, which has sparked a heated debate between concerns over youth health and the impact on small businesses. The bill, House Bill 0968, passed the Tennessee Senate on Monday and is expected to move to the House on Tuesday for approval.
This legislation aims to tackle the rising rates of youth vaping in the state, which are more than twice the national average, according to the Tennessee Health Advisory Commission, with 22% of young people in Tennessee reporting vaping.
Health Concerns vs. Business Struggles
Senator Ken Yager, one of the bill’s proponents, stated that the legislation is intended to curb the influx of unregulated, foreign-made vapes flooding the market, which he claims are “poisoning children.” The bill's sponsor emphasized its goal to protect youth from the harmful effects of vaping, with provisions requiring identification to verify individuals are at least 21 years old before purchasing.
However, not all lawmakers agree. Senator Jeff Yarbro acknowledges the need for regulation but argues that the bill targets businesses rather than addressing the root causes of youth vaping.
Phil Harrell, a representative of the Smoke-Free Association, which represents 800 vape shops in Tennessee, expressed concerns about the bill’s potential impact on small businesses. He fears that with only around 500 FDA-approved vape products available, his retail shop, which spans 3,000 square feet, may struggle to stay afloat.
Financial Implications
The bill also proposes a 10% tax on vape products, which is expected to generate over $16 million in revenue for the state. While the tax aims to reduce vaping, it has stirred concern over the economic strain it could place on local vape shops.
