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Tax bill advances, includes modest tax on e-cigarettes (video)

A final vote is expected in the House Wednesday on a package of tax changes that would among other things place a new tax on e-cigarettes.

Bill backers say the levy  – 5 cents per milliliter of liquid – has the support of the tobacco industry. But Mecklenburg County Democrat Rep. Becky Carney urged her colleagues to pull the e-cigarette portion out of the omnibus tax bill and allow for further debate.

Carney argued that the nickel tax was well-below the 45-cent-per-pack tax on traditional cigarettes.

“If we’re going to tax something, are we doing it to our greatest advantage? Yeah, a nickel is great for the industry, of course,  that’s low. But what about those revenues in North Carolina that we potentially will lose and that we could bring in?” said Rep. Carney.

“I think we’ve kicked the tobacco industry around enough, maybe we owe them a little deference,” countered Cabarrus County Republican Rep. Larry Pittman.

Orange County Rep. Verla Insko also argued that the level of this new tax and the impact on teenage smokers warranted further discussion.

Carney’s amendment ultimately failed Tuesday, keeping the e-cigarette measure as part of the broader tax bill.

One more vote and the bill heads to the Senate. To hear a portion of Tuesday’s debate on House Bill 1050, click below. To learn more about the FDA’s take on e-cigarettes, click here.

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