Whitmer Recommends New Tax Targeting Youth Nicotine Consumption
Update: Feb 4-14, 2025
Governor Gretchen Whitmer has introduced a proposal to tax vaping products and nicotine pouches at the same 32% wholesale rate that currently applies to non-cigarette tobacco products like cigars and chewing tobacco. Named in the governor’s executive budget recommendation, her administration argues that this change would close a loophole in state law that allowed these nicotine products to avoid taxation. The executive office estimates the new tax could generate approximately $57 million annually, with funds earmarked for programs focusing on smoking prevention, expanded healthcare access, and adolescent mental health initiatives.
Thirty-two states already tax vaping products in some form, due to studies that link higher tobacco taxes to reduced consumption. With a CDC survey indicating that 14% of Michigan high schoolers have used vapes in the past month, all can agree that action is necessary. However, Whitmer’s proposal is expected to face opposition in the Michigan Legislature, where the House Republican majority has historically resisted new taxes.