Vermont's legislative session is over and a tax on e-cigarettes exceeding 90 percent is going into effect Monday.

Wholesale dealers and consumers will abide by rule changes regarding a 92 percent excise tax — a "Tobacco Products Tax" — starting July 1. The legislation, which expanded items that can be taxed, passed earlier in 2019.

The state's Department of Taxes provides some clarity on who specifically will be affected by this new legislation.

Which products will be included in the tax?

Items included in the legislation are provided on the department's website. The legislation "expanded the existing definition of 'other tobacco products.'"

Examples include:

E-cigarettes.

Vaping hoodies.

Vaping liquid cartridges.

Vaping liquid.

"Repair parts that can only be used in vaping devices."

How does Act 28 impact dealers?

Licensed wholesale dealers must pay on a monthly basis and file a Tobacco Product Tax Form ("even when no tax is due") no later than 15 days after a month concludes.

Wholesale dealers must collect and remit tax on items "imported, manufactured, furnished, sold, shipped, or delivered by them to retailers on or after July 1, 2019."

Individuals who also have a retail dealer license and sell products need to determine the tax for the wholesale cost "when they acquired the products at wholesale."

Retail dealers do not need to worry about the tax on "pre-existing inventory, and they may still sell that inventory at retail." Keep in mind that you'll need to keep invoices for three years to prove what you received without the tax was done so at wholesale before July 2019.

Retailers need to source other tobacco products from wholesale dealers starting Monday. If the tax is not paid by the wholesale dealer (which will be indicated on the dealer's invoice), it falls on the retailer.

What about consumers?

Consumers purchasing products named in the legislation will abide by taxes already in effect for "other tobacco products" — meaning they must pay a sales tax on top of the Tobacco Products Tax.

How does Vermont compare to other states?

Only a few other states had excise/special tax laws in place on e-cigarettes as of March 15, 2019, according to the Public Health Law Center. These included:

California.

Delaware.

District of Columbia.

Kansas.

Louisiana.

Minnesota.

New Jersey.

North Carolina.

Pennsylvania.

West Virginia.

Contact Maleeha Syed at mzsyed@freepressmedia.com or 802-495-6595. Follow her on Twitter @MaleehaSyed89.