Revenue Potential of a Tax on E-Cigarettes in Hawaii

This Fact Sheet was written by Frank Chaloupka. The fact sheet estimates the revenue potential of e-cigarette tax rates in Hawaii. Using available data, the revenues from an e-cigarette tax levied as 15%, 40%, and 70% of wholesale e-cigarette prices are modeled. Chaloupka estimates that the revenue from a 15% tax of the wholesale price would be $8.1 million, the revenue from a 40% tax would be $13.6 million, and, finally, the revenue from a 70% tax would be $7.3 million. Given that these estimates are speculative, the fact sheet also discusses the impact that changing various assumptions would have on the revenue.