As a result of the explosion of JUUL products leading to an unprecedented increase in youth e-cigarette use, state and local governments are considering a variety of policy options to regulate this rapidly expanding market. Taxation has proven to be one of the most effective methods to reduce youth cigarette use. To date, however, very few states have enacted e-cigarette taxes. In response to the epidemic of youth use, many states are considering taxing e-cigarettes, but it is still not clear how best to do so.