Campaign Urges Hochul to Veto Vape Tax Shift

The bill would move New York's 20% vapor product tax collection from the retail level to the wholesale level.

Updated on Nov. 14, 2026 in Legislative Policy

Bold flat-color editorial illustration of stacked plain cardboard cartons with a single thin line running across them, in deep red and cream, evoking a supply-chain tax shift. — A campaign led by the Campaign for Tobacco-Free Kids is urging Gov. Kathy Hochul to veto a bill that would move New York's 20% vapor product tax collection from retail to wholesale. AI Illustration. Upload story photo >

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Should New York sign the bill shifting e-cigarette tax collection to wholesale?

The Campaign for Tobacco-Free Kids is calling on Gov. Kathy Hochul to veto a bill that would shift the collection point of New York's tax on vapor products from retail to wholesale. The bill passed both houses of the New York State Legislature in the past session and keeps the tax rate at 20%.

Why it matters

Because wholesale prices are generally less than half of retail prices, the change would make the effective tax paid substantially lower, a point the Campaign has opposed. Sen. Leroy Comrie says the bill is intended to strengthen enforcement of the state's flavored vape ban, which took effect in 2020, and to make it harder for distributors to supply minors.

The bill keeps a 20% tax rate while moving collection from retail to wholesale, where prices are generally less than half of retail, an effective cut of more than 50%. The Department of Taxation and Finance says the language gives it no effective enforcement tools, and the governor's position remains unstated.

The players

Kathy Hochul

Kathy Hochul is the Governor of New York, who must decide whether to sign or veto the bill.

Leroy Comrie

Leroy Comrie is a New York State Senator who says the bill's tax restructuring is being worked out with the governor's office.

Campaign for Tobacco-Free Kids

The Campaign for Tobacco-Free Kids is an advocacy organization focused on reducing tobacco use, which is urging a veto of the bill.

Association of Convenience Stores

The Association of Convenience Stores is a trade group representing convenience retailers, which has urged Hochul to sign the bill.

Department of Taxation and Finance

The Department of Taxation and Finance is New York State's agency responsible for administering state taxes, which has said the bill lacks effective enforcement tools.

The details

The bill changes the point in the distribution chain where the vapor product tax is collected, from retail sales to wholesale distribution. The Campaign for Tobacco-Free Kids has posted an online action alert asking Hochul to veto it, while the Association of Convenience Stores has urged her to sign it.

2020: New York's ban on flavored vape products took effect, and the minimum purchase age was set at 21.
This past session: The bill passed both houses of the New York State Legislature.
Upcoming budget: The Campaign for Tobacco-Free Kids wants Hochul to propose the same tax changes.

Political Context

The bill builds on New York's 2020 flavored vape ban and 21 minimum purchase age, using tax collection rules as a new enforcement lever. Critics, led by the Campaign for Tobacco-Free Kids, argue the wholesale shift would cut the effective tax burden by more than half.

If the bill is signed, the tax on vapor products would be collected at the wholesale level, where prices are generally less than half of retail, which could change what retailers and buyers pay in practice. New York buyers must remain 21 or older for vapor purchases regardless of the outcome.

The takeaway

Tax collection points can shape enforcement as much as tax rates do, and this bill's outcome will show whether shifting collection upstream changes how vapor products are sold and taxed in New York.