The Minneapolis, MN City Council has passed an ordinance setting a minimum price of $25 for vapes. The law passed unanimously at the council’s July 10 meeting
The ordinance will take effect as soon as it's approved by Mayor Jacob Frey. According to MPR News, he intends to.
The minimum pricing ordinance is believed to be unique in the United States, but aligns with the Minnesota city’s existing restrictions on tobacco products. Minneapolis has previously set minimum prices on cigarettes, cigars, snuff and snus.
The new law amends the city’s existing tobacco regulations, and appears to apply to all vaping devices whether they contain e-liquid or not. It does not include bottled-e-liquid or prefilled pods, or any kind of accessories.
The amendment reads: “No person shall sell or offer to sell any electronic delivery device at a price that is less than twenty-five dollars ($25.00) per device, excluding taxes or fees. This minimum price is applicable to any type of electronic delivery device and applies per unit if multiple devices are sold together.”
Several U.S. cities and counties impose vape taxes (some in addition to state taxes), but the strategy of setting a minimum price for vapes appears to be a new one. It is clearly aimed at the sale of disposable vapes, which vary in price but mostly sell for $10-20.
The law may encourage some regular disposable users to seek out refillable products (which are cheaper in the long run) that are available at vape shops or online. But it will also encourage retailers to stock disposables with larger capacities, and will drive many consumers to simply buy outside the city.
The ordinance will be a boon for retailers in the cities that border Minneapolis. Customers will drive a few extra blocks to buy their disposable vapes, and will then also buy gas, snacks, beverages and lottery tickets at stores outside the city.
Because of declining cigarette sales, state governments in the U.S. and countries around the world are looking to vapor products as a new source of tax revenue.
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