Vermont dispensary shoppers may have noticed that cannabis vaporizers can be hard to find, and when they are available, they are one of the most expensive items on the shelf.
Ranging as much as $70 for half a gram or over $100 for a full gram cartridge in some places, vape cartridges and their accessories carry hefty price tags in the Green Mountain State.
On July 1, 2019, the state of Vermont placed a 92% wholesale tax in all electronic cigarette devices and products, intended to deter youth access to tobacco vaping products. The bill’s language, however, grouped other vaporizers with nicotine products.
“They used such broad language that it affected the cannabis industry.” — Founder Tito Bern, Bern Gallery/Dispensary.
“It was originally intended to fight Juul use in high school, and I think we can all agree that it’s a bad thing that needs attention, but they used such broad language that it affected the drug industry. cannabis,” said Tito Bern, founder of Bern. Downtown Burlington’s pending gallery and retailer Bern Dispensary.
Berna has long championed this issue and worked closely with former state representative Debbie Ingram, one of the original sponsors of the e-cigarette bill. Ingram, Bern said, was working on new language with State’s Attorney Rebecca Wasserman, but before more progress could be made, Ingram was not re-elected.
“It was like all the work I had done was erased in an instant,” Bern lamented.
Companies can barely break even after the e-cigarette tax, which applies to wholesale purchases, and consumers end up paying nearly double for the products.
Due to limited research, it is difficult to prove that vaping cannabis is a safer alternative to smoking, but they believe that it is true, pointing to the way it vaporizes the flower or oil without reaching the point of combustion. For many users who vape, it is their preferred method of consumption.
“It’s unfortunate, because to me, from a public health perspective, we’d rather the people of Vermont buy a vape cart that’s been tested; we know what ingredients have been used, we know what kind of diluents have been used have used,” he said. James Pepper of the Vermont Cannabis Control Board. “We don’t want to push people into the illicit market in this.”
Anti-cannabis advocates in recent years have cited concerns about the potency of cannabis products and youth use as a focal point in their messaging. These efforts also influenced the No more than 60% THC in solid concentrates which was retained during the spring 2022 legislative session after a lengthy and often contentious debate.
“This vaping tax … essentially prices these products out of our market.” — President James Pepper, Vermont Cannabis Control Board
“That’s the whole underlying theory behind regulating cannabis in the first place, is that we’re not saying these products are safe or healthy for you,” Pepper said. “We’re saying we can do better by testing and labeling and providing some education.”
“That same logic applies to high solid concentrates and applies to the removal of this vape tax which basically puts these products out of our market,” he added.
While the tax is recently affecting regulated THC products and cartridges, it has been wreaking havoc on sales of CBD vaporizing devices during the last three years. This includes products like Pax, Volcano, and Puffco, which are dry herb and oil vaporizers.
“This tax is basically eating up almost all the profits. … If we tried to make a business out of it, it wouldn’t work.”
— Chief Scientific Officer Grayson Glosser, X-tract VT.
Cannabis Oil Extraction at X-Tract Vermont in St. Albans.
X-Tract Cannabis Oil Extraction in Vermont
X-TRACTWhile the adult-use market is up and running, companies can barely break even on these products because of the e-cigarette tax, which applies to wholesale purchases, and consumers end up paying almost twice as much for the products.
“We’ve been selling these items for no profit, but you know, hey, at least they come to the store, maybe they buy something else. We had felt that we had to keep these things for our customers and our patients and everybody else,” Bern said.
Most manufacturers hold back production until the tax is gone. X tract VT, however, still makes vape products. Although they mainly specialize in pre-rolls and edibles, they want accessible cannabis vapors for their customers.
Cannabis vapors are expected to account for around 12% of sales in the adult use market.
“It would be nice if, you know, we could do things with vapers. But this tax is basically eating up almost all the profits from that. If we tried to make a business out of it, it wouldn’t work. Like we couldn’t hiring people, it would be very difficult,” said X-tract VT Chief Scientific Officer Grayson Glosser.
Nick Schuermann a Vermont NORMLalong with other partners, is working to find the best solution for both Vermont businesses and consumers, taking into account both industry and public health.
One important thing to note, he said, is that this tax does not apply to registered medical cannabis patients in the state of Vermont. However, according to state-sponsored research projectcannabis vaporizers are expected to account for about 12% of sales in the adult use market.
“It is quite a high number. So at the very least, we think it’s worth looking at to see what’s the best course of action … for that 92% tax,” Schuermann said.
Legislative action will be needed before manufacturers and retailers can make the much-needed changes that will increase consumer accessibility to cartridges and vaping devices.
“These companies in Vermont, they were making CBD and now we’re going to make THC. You’re just removing a huge product to sell them,” Bern noted. “It’s a great revenue stream for them, it’s interesting and captivating for the young audience.”
“It can solve so many problems at once with tax revenue and keep young people in the state,” Bern added.
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