ROANOKE, VA — A proposed $20,000 annual operating fee targeting standalone vape and smoke shops sent shockwaves through Roanoke’s business community this week after Councilman Phazhon Nash introduced the measure, framing it as both a deterrent against youth marketing and a revenue stream bypassing traditional tobacco taxation.
The Ordinance: The fee would apply exclusively to businesses where vaping products, hemp-derived goods, or smoking accessories constitute the primary revenue source. Convenience stores, gas stations, or retailers with diversified product lines would be exempt – a distinction immediately branded as “discriminatory” by specialty shop owners.
Councilman Nash’s Rationale:
“These businesses… vape stores, hemp stores, and smoke shops… make so much money that $5,000 is nothing. I want to give them an amount that hurts to pay. If you want to start this business, you may think twice before doing it… we’re able to get some of the money that you’re not paying through the cigarette tax.”
Nash explicitly linked the fee to concerns over youth accessibility and marketing, asserting specialty shops pose unique risks compared to general retailers.
Firestorm of Opposition:
Local vape shop proprietors decried the proposal as economically devastating:
- “This isn’t regulation – it’s eradication,” stated Lisa Hammond, owner of Mountain Vape Co. “My entire annual profit wouldn’t cover this fee. They’re legislating us out of existence while letting gas stations down the street sell the same products tax-free.”
- Multiple owners highlighted the irony of punishing FDA-registered small businesses while exempting corporate chains selling identical products.
Council Discord:
Even within City Council, questions arose about fairness and efficacy:
- Councilman Peter Volosin challenged the selective application: “If this is a public healthf=”https://vapeobservation.com/oral-health-of-vape-can-a-dentist-tell-if-you-smoke-vapes/”>health initiative, why aren’t we putting this fee on gas stations? They vastly outnumber us in locations selling these products.”
- Vice Mayor Terry McGuire shifted blame upstream but supported action:
“Vaping is a huge problem. Some products are dangerous or unknown… We’re fighting federal and state regulatory failure.”
Legislative Path Forward:
The Council voted to direct the City Attorney’s Office, Commissioner of the Revenue, and City Manager to draft a formal ordinance, requiring precise definitions of “vape retailer” and fee structure. A final vote is pending further analysis and input.
Industry Rebuttal:
“Positioning us as cartoon villains profiting off children is disingenuous,” argued Jeff Carter of Virginia Vape Association. “We card rigorously, follow all state laws, and support bans on kid-friendly flavors. This fee ignores real solutions like closing the online sales loophole or enforcing existing laws at all retailers.”
Why It Matters:
Roanoke’s proposal joins increasingly aggressive local tactics targeting adult-only vapor retailers, operating under regulatory frameworks denying them standard tobacco tax options. The selective burden on specialty shops—despite identical products sold elsewhere—raises constitutional questions around equal protection and discriminatory taxation.
This ordinance also highlights a growing municipal trend: cities facing state or federal inaction on youth access and synthetic nicotine products resort to punitive local financial barriers—an approach critics argue harms small businesses while doing nothing to curb underage sales at exempted retailers.
Vape Observation will monitor ordinance development and provide analysis of its legal viability and economic impact studies as they emerge from City Hall.
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