CR 2013 - 074 Tobacco License for Vaping Studio at 811 MainstreetSeptember 3, 2013 Council Report 2013-074
APPROVE A TOBACCO LICENSE FOR
VAPING STUDIO, INC. DBA HOPKINS VAPING STUDIO
LOCATED AT 811 MAINSTREET
Proposed Action
Staff recommends adoption of the following motion: Move to approve a Tobacco License for
sale of e -cigarettes for Vaping Studio, Inc. dba Hopkins Vaping Studio located at 811 Mainstreet.
Overview
The applicant, Paula Williams is applying for a license to sell e -cigarette products in conjunction
with other general specialty merchandise. While there is no tobacco being sold in the
establishment, the State has ruled that nicotine products may be used in e -cigarettes and must be
regulated in the same manner as other tobacco products. This means that a tobacco license is
required and the sales of products containing nicotine may not be made to individuals under the
age 18 years of age.
The fee for a tobacco license is $ 200.00.
Primary Issues to Consider
Information regarding e -cigarettes from the MN Department of Revenue
Zoning requirements
Routine license application
Supporting Information
• Full application is available in the City Clerk's office
Kristine A. Luedke, City Clerk
Financial Impact: $ 200.00 Budgeted: Y/N N Source:
Related Documents (CIP, ERP, etc.):
CR 2013-074
Page 2
Background
The following information is provided from the Minnesota Department of Revenue:
What is an e -cigarette? An electronic cigarette, or e -cigarette, is an electrical device that
simulates the act of tobacco smoking by producing an inhaled vapor bearing the physical
sensation, appearance and often the flavor of inhaled tobacco smoke.
The department states the e -cigarette meets the definition of a tobacco product in MN Statute
section 297F.01 subd. 19 which provides in part the following: "tobacco products" mean any
product containing, made, or derived from tobacco that is intended for human consumption,
whether chewed, smoked, absorbed, inhaled, snorted, sniffed or ingested by any other means, or
any component, or accessory of a tobacco product.."
The key phrases in the statute that establish the taxability of an e -cigarette are (1) "any product
containing, made, or derived from tobacco" (2) "whether.. smoked .. or inhaled.." and (3) ".. any
component, .. or accessory of a tobacco product.."
The department's position is that the e -cigarettes are subject to the tobacco products tax. The
cartridge containing nicotine is a component of the e -cigarette. The cartridge contains nicotine
which is ordinarily derived from tobacco and is used by a person by smoking them or inhaling.
The department assumes that all nicotine is derived from tobacco.
Zonin,2
The requested address is located in the B-2 zoning district. The zoning department has approved
that the use is allowed in the B-2 district.
Routine License Application
Due to the fact the State considers the e -cigarettes are subject to the tobacco product tax. The
applicant is applying for a tobacco license. A tobacco license cannot be issued without City
Council approval.
Alternatives
1. Approve the application
2. Continue the item for further discussion.
3. Deny the application
Staff recommends alternative one.