Pennsylvania's new 40 percent tax on e-cigarettes takes effect Saturday as the Legislature moves to roll back a tax opponents have called the death knell of a new industry.

The tax was part of this summer's revenue compromise between the four caucuses and Gov. Tom Wolf to fill a $1.3 billion hole in the state's $31.5 billion budget. It relies on $13.3 million from "vapers," who inhale vaporized nicotine instead of combusting tobacco in cigarettes.

Vape shops, which tend to be smaller operations, balked at the lump-sum check they would have to write to cover the state's 40 percent "floor tax" on their inventories. Similarly, they said the 40 percent wholesale tax would drive their customers to online and out-of-state retailers. A number of such businesses have already closed in anticipation of the tax's Oct. 1 effective date.

According to the state Department of Revenue, the floor tax revenue would be due no later than Dec. 29.

Chris Hughes was selling off the last of his supplies to larger vendors on Friday afternoon. His Montoursville business, Fat Cat Vapor Shop, closed Sept. 24.

On his last day in business, Hughes cooked up hamburgers and hotdogs for a going-out-of-business party for his customers. By the end of the day, most of his shelves were bare.

"Almost everything was gone because I sold stuff the last few days at 50 percent off," he said. "We got rid of a tremendous amount of stock."

Hughes is holding onto his lease because he's running a write-in campaign this year against his local lawmaker, who voted for the revenue bill, and will use his business as his political office.

For vape shops like Fat Cat, there is possible relief in the form of a series of bills working their way through the legislature. One of them, which would eliminate the floor tax and institute a 5-cents-per-milliliter tax on vape liquid, is expected to come up for a second vote in the House when it returns Oct. 18.

It's unclear how much revenue the new tax would generate, but its sponsor cited industry estimates that it would generate roughly the same revenue without the onerous floor tax.

"If they all close up, we get nothing," said Rep. Jeff Wheeland, R-Lycoming County. "This way, we know we're going to get pretty close."

Wheeland said he based his proposal on the taxes Louisiana and North Carolina imposed on e-cigarettes.

Vaping, of course, is generally seen as an alternative to cigarettes and--by some researchers--as a possible path smokers can use to quit. Public health advocates have also expressed concerns that the e-cigarettes may also entice young people to take up smoking.

"North Carolina is one of our leading tobacco-producing states," he said. "If this is a competitor to tobacco, that might be a good place to start."

Under Wheeland's proposal, someone who bought a 15 mL vial of liquid, for example, would pay 75 cents for the vape tax in addition to a standard 6 percent sales tax.

If Wheeland's bill passes, Hughes said he could reopen his business within a week or 10 days. All he would need to do is restock his inventory.

If Oct. 1 led vape shop owners to face the demise of their business, it proved to be a boon -- at least temporarily -- for other tobacco stores. The day also sees the implementation of a 55-cents-per-ounce tax on smokeless brands, such as chewing tobacco and snuff. Roll-your-own tobacco will also be taxed at a later date.

Lori Kelley, who manages the Puff 'N Snuff store in Enola, said a number of her regular customers come in to pick up large quantities of their tobacco products in order to avoid paying the new tax.

One customer purchased a case of Skoal, with 18 rolls of smokeless tobacco in each case, each week for three weeks in advance of the tax's implementation.

"We're trying to keep up with the damand," she said Thursday, "but after tomorrow, we're done."

All of the new taxes has led to a lot of confusion over what's covered and what's not, she said. Some of her customers switched to roll-your-own tobacco when the cigarette tax hike took effect in August. Now, that tax is increasing, too, and the vape tax means that's not an attractive alternative, either.

"Most of our customers are blue-collar people," Kelley said. "They work hard for their money and it's a smack in the face because there are other places (the state) can get their tax money from. Instead, it's always tobacco."

Including the most recent increase and 2014's Philadelphia-specific tax, state lawmakers have voted to increase the cigarette tax 12 times. It was introduced in 1935 at just one-tenth of a cent per cigarette, or 2 cents per 20-pack. Smokers now pay $2.60 in taxes with each pack they buy.

Public health advocates say every 10 percent increase in the price per pack leads to a roughly 4 percent decrease in the number of smokers.

Of course, Pennsylvania's budget increased taxes on virtually every tobacco product -- cigars are still tax-free -- that smokers could use to decrease their nicotine intake.

Most established medical associations favor nicotine patches and gums for smoking cessation, but those items generally aren't covered by insurance and can prove cost-prohibitive to low-income smokers.