Taxation Situation
Excise taxes on vapor products and tobacco products other than cigarettes, also referred to as "other tobacco products" (OTPs), present considerable administrative burdens on businesses dealing in these products. All 50 states impose excise taxes on most traditional OTPs, and have for a long time, but operators in the vapor category have been subject to rapidly shifting regulatory conditions as states update their OTP laws and other laws to account for vapor products.