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overshifting, where the price increase exceeds the tax increase or undershifting, where the price increase is smaller than the tax increase.2023 However, there is a significant gap in our knowledge about how taxes on HTPs and e-cigs are translated into retail prices, and hence what pricing tactics the industry employs

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California California imposes a two-tiered tax on vaping products: Wholesale tax: Set annually by the Board of Equalization, currently 52.92% of the wholesale cost for nicotine-containing products Example: If a vaping device has a wholesale cost of $100, the wholesale tax would be $52.92

Cigarette companies responded by developing menthol-flavored brands like Kool, which seemed to be more soothing to the throat, and advertised these as being more healthy