After much prodding by the tobacco industry for the government to impose taxes on e-cigarettes as well as cigarettes, the North Carolina House has approved a bill introducing a modest tax on electronic cigarettes in its first major vote this season. The bill would also impose a cap on local taxes on businesses.

The e-cigarette industry was a concern, not only for the tobacco industry but also for the state as a whole. Local lawmakers were divided and challenged by how to best regulate the new product in a state rich with tobacco legacy. Furthermore, the tobacco industry is also playing a role in the political environment. Electronic cigarettes were introduced in the market as an alternative for smokers and to enable them to avoid cancer-causing substances in tobacco. However, the U.S. Food and Drug Administration is still in the process of developing guidelines for the product as it is unclear how e-cigs affect a person's health and whether they have adverse effects. If so, they may warrant higher taxes. Either way, it has been agreed upon that the product should indeed be taxed.

Another important amendment introduced in the bill is that it clarifies the definition of an e-cigarette -- considering it as a tobacco product -- which would necessarily mean that it is not legal for minors. The amendment was passed by a wide margin. Although the bill has been passed, much of the discussion heavily involved the economic effects of the tax imposition -- how much the tax should be and whether the cap would produce negative effects on revenue and even job availability. Aside from the e-cigarette tax, taxes on other businesses were also heavily discussed, with many amendments being proposed and rejected.

According to NewsObserver, a Fairview Republican, Rep. Nathan Ramsey, supported the measure despite expressing concerns about how the bill would affect local governments.