Vaping Companies Flee Some States Amid Tax Law Confusion (1)

For Dana Shoched, CEO of O2 Vape, a cannabis vaping device supplier in Michigan, complexities from a recent tax reporting law aimed at e-cigarettes, have forced her to abandon business in some states. “It’s been a nightmare,” she said.

Hers is just one of over 10,000 businesses struggling to comply with a congressional mandate that forces vaping companies to register with federal and state governments as tobacco sellers for tax collection or face fines. It also extends cigarette shipping restrictions to any product associated with heating aerosolized substance.

Vaping companies say they are ...