The Best State to Setup a Vape Shop

The U.S. Vaping Index is created by the Consumer Choice Center with the objective of categorizing and ranking every state based on how consumer-friendly regulations are to vapers. The rankings do not precisely reflect how friendly they are to business owners such as yourself, but from our point of view, the results are transposable.

The rankings utilize a uniquely weighted scoring system that analyzes three main aspects: flavor restrictions, taxes, and the ability to sell vaping products online. The final results from the Vaping Index are split into three different grades: F (worst), C (mid-level), and A (top grade).

Based on the results of the Vaping Index and our own experience as a wholesale online vape store, we’ve narrowed down the list to a few top states for you to start your business in and a few states you should not even be looking into.

The 5 Worst States to Start a Vape Shop In

Massachusetts

Massachusetts has an active flavor ban that has set its score a few points below the better states. It also has an excise tax of 75% on the wholesale price for vaping products.

New York

We’re actually based out of New York, however, we operate online and work with a business model that makes things a little bit easier for us. For traditional vape shops, things are different. New York has multiple flavor bans on vape products and it also has an excise tax of 20% on the retail price of vaping products. On top of it all, it also has several restrictions for online sales which makes it difficult for an online vape store to operate here.

California

Believe it or not, California is one of the worst states to open up a vape shop in. The reason behind this is that it has become a sort of hotbed for flavor bans, with municipalities banning multiple flavors. Not only does this make it difficult to sell products, but it also makes it difficult to know exactly what you can and cannot sell.

The state has also banned online sales of flavored products altogether, on top of having a 57% excise tax on the wholesale price of vape supplies.

New Jersey

New Jersey has also implemented multiple flavor bans and has a 10% excise tax on the retail price of vape products.

Rhode Island

Rhode Island is also part of the ‘not-so-top’ list due to the flavor ban it has implemented and its restrictions on online vape supplies sales.

Top 5 U.S. States to Open a Vape Shop In

Florida

Florida has been characterized as a fairly lenient state regarding regulations, not only in the vape space, but in general when it comes to consumables. It’s also home to many tourist cities where malls and airports have become a great choice to open up a vape store.

Colorado

More specifically, Denver has been one of the cities that has spearheaded cannabis law, which has made it a fairly friendly city for vaping products in general. Denver only bans vaping on government property, the rest is pretty much fair game. Flavor restrictions, taxes, and location also make Colorado a great place to open up your vape business.

Virginia

Virginia is also among the top contenders regarding flavor restrictions, taxes, and location opportunities. One great city to look into would be Virginia Beach. A population of 500,000 and a great number of vape-friendly restaurants and bars make it almost the perfect place for a new vape business.

Washington

Washington is not precisely at the forefront of vape shop friendliness, but it is home to Seattle, a city that has a history of embracing subcultures and different lifestyles. This has made it very easy for consumers (your clients) to buy and use vape products. Although it’s not at the very top of the list, Washington is very well ranked by the Vaping Index.

Nevada

Nevada is a similar case to that of Washington. Home to Las Vegas, so-called Sin City, where anything goes, Nevada is openly friendly to vapers and is fair in terms of taxes. 

Final Thoughts

Any vape shop or online vape store owner has to really think about where to open their business due to taxes, flavor bans, and online sales restrictions. In an industry that’s changing every few weeks, and new regulations constantly being voted on, the best option is to make sure that you have the basics down, starting with location.