Top Takeaways:
- Minneapolis City Council has set a minimum price of $25 per e-cigarette device, more than tripling current costs.
- Evidence shows vape taxes can drive smokers back to cigarettes, raising concerns that the high price floor may push adults toward more harmful combustible products.
- Council pairs tax with location restrictions, banning new tobacco retailers within 300 feet of K-12 schools to further discourage youth access.
The Minneapolis, Minnesota, City Council voted unanimously on July 10 to raise the minimum retail price of all e-cigarette products to $25, a dramatic increase from current prices as low as $9 . It the highest cost of a vape device in the country.
While the policy is intended to curb youth vaping, experts warn it may inadvertently drive adult consumers back to combustible cigarettes, a concerning public health setback.
“We were set to be the generation to end smoking, and when Juul became available and its pretty flavors and hyper affordability, that changed,” said Council Member Aurin Chowdhury during the deliberations. “We know the best way to stop tobacco and nicotine addiction among young people is to stop the start.”
Passage of the ordinance follows a 2024 change by the city that raised the minimum price for a pack of cigarettes to $15 and restricted the ability of stores to offer samples and accept coupons.
Residents have begun to balk at the steep increase. “That’s outrageous… It’s going to hurt my pockets,” Timothy Jones, a vaper, told local media. Another vaper and city resident, Chris Italia, told local media, “I don’t think the government should be telling you (what you can and cannot legally do) … we’re going to step in here.”
Many vape shop owners expressed concern that steep prices would damage their businesses and prompt adult users to return to cigarettes, which remain far cheaper and more accessible. Academic studies reinforce these warnings.
A landmark Minnesota analysis found that increasing vape prices led to reduced smoking cessation and higher cigarette use among adults, estimating 32,400 additional smokers due to elevated vape prices.
The study puts the cross-elasticity of cigarette use relative to vapes at around 0.13, indicating adult smokers will shift back to more harmful options when vape prices rise. Further research shows youth e-cig consumption is sensitive to price increases, but that regulation may push some back to smoking traditional cigarettes.
In addition to the price floor, Minneapolis extended location restrictions on tobacco retailers. The ordinance prohibits new vape and cigarette shops within 300 feet of K‑12 schools or residential zones.
Council Member LaTrisha Vetaw underscored the goal of the price increase: “This is part of the work to keep our young people from smoking.”
A spokesperson for Minneapolis Mayor Jacob Frey said he plans to sign the legislation. The price increase for e-cigarettes will go into effect as soon as the mayor signs the bill. The zoning changes will go into effect on Aug. 1.
