A study from the University of Pittsburgh examined the prevalence of Pennsylvania vape
shops and vape shop compliance with retail licensing before and after enactment of a 40%
wholesale tax on e-cigarettes and other vaping products. Within the 18 months after the
tax, the prevalence of vape shops increased linearly by 23%, indicating that the tax did not
reduce the prevalence of vape shops. Further, the authors found that approximately a
quarter of all vape shops were noncompliant with maintaining a valid e-cigarette retail
license, indicating the need for stricter enforcement of the tax law. See the paper.