Indiana Senate panel backs 20% tax on e-cigarette liquids

Indiana would impose a 20% tax on the liquids used in electronic cigarettes under a proposal endorsed by a legislative committee.

The Senate Appropriations Committee voted Thursday in support of the bill. The vote came after the committee adopted a tax on the price of the vaping liquid, rather than a 4 cents per-milliliter tax that was backed by the House in February.

Sen. Travis Holdman, R-Markle, said the 20% tax comes out to a similar total tax on a pack of cigarettes and will be easier to calculate than a tax based on the amount of vaping liquid sold.

Supporters argue the tax could discourage vaping, especially among younger users.

The full Senate could vote on the proposal next week.