Tobacco & vapor products tax

AN ACT Relating to increasing tobacco and vapor products taxes; 1
amending RCW 82.25.010 and 82.26.020; adding a new section to chapter 2
82.24 RCW; and providing an effective date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. A new section is added to chapter 82.24 5
RCW to read as follows: 6
In addition to the tax imposed upon the sale, use, consumption, 7
handling, possession, or distribution of cigarettes in RCW 82.24.020 8
and 82.24.026, there is imposed a tax in an amount equal to $0.015 9
per cigarette. Revenue collected under this section must be deposited 10
into the general fund. 11
Sec. 2. RCW 82.25.010 and 2019 c 445 s 102 are each amended to 12
read as follows: 13
(1)(a) There is levied and collected a tax upon the sale, use, 14
consumption, handling, possession, or distribution of all vapor 15
products in this state as follows: 16
(i) All vapor products other than those taxed under (a)(ii) of 17
this subsection are taxed at a rate equal to ((twenty-seven cents )) 18
$0.30 per milliliter of solution, regardless of whether it contains 19
H-0609.1
HOUSE BILL 1416
State of Washington 69th Legislature 2025 Regular Session
By Representatives Reeves, Davis, Pollet, Duerr, Parshley, Peterson,
Gregerson, Fey, Ormsby, Hill, Macri, and Scott
Read first time 01/20/25. Referred to Committee on Finance.
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nicotine, and a proportionate tax at the like rate on all fractional 1
parts of a milliliter thereof. 2
(ii) Any accessible container of solution, regardless of whether 3
it contains nicotine, that is greater than five milliliters, is taxed 4
at a rate equal to ((nine cents )) $0.10 per milliliter of solution 5
and a proportionate tax at the like rate on all fractional parts of a 6
milliliter thereof. 7
(b) The tax in this section must be imposed based on the volume 8
of the solution as listed by the manufacturer. 9
(2)(a) The tax under this section must be collected at the time 10
the distributor: (i) Brings, or causes to be brought, into this state 11
from without the state vapor products for sale; (ii) makes, 12
manufactures, fabricates, or stores vapor products in this state for 13
sale in this state; (iii) ships or transports vapor products to 14
retailers or consumers in this state; or (iv) handles for sale any 15
vapor products that are within this state but upon which tax has not 16
been imposed. 17
(b) The tax imposed under this section must also be collected by 18
the department from the consumer of vapor products where the tax 19
imposed under this section was not paid by the distributor on such 20
vapor products. 21
(3)(a) The moneys collected under this section must be deposited 22
as follows: 23
(i) Fifty percent into the Andy Hill cancer research endowment 24
fund match transfer account created in RCW 43.348.080; and25
(ii) Fifty percent into the foundational public health services 26
account created in RCW 82.25.015. 27
(b) The funding provided under this subsection is intended to 28
supplement and not supplant general fund investments in cancer 29
research and foundational public health services. 30
Sec. 3. RCW 82.26.020 and 2019 c 445 s 404 are each amended to 31
read as follows: 32
(1) There is levied and collected a tax upon the sale, handling, 33
or distribution of all tobacco products in this state at the 34
following rate: 35
(a) For cigars except little cigars, ((ninety-five)) 95 percent 36
of the taxable sales price of cigars, not to exceed ((sixty-five 37
cents)) $0.72 per cigar; 38
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(b) For all tobacco products except those covered under separate 1
provisions of this subsection, ((ninety-five)) 100.05 percent of the 2
taxable sales price. The tax imposed on a product under this 3
subsection must be reduced by ((fifty)) 50 percent if that same 4
product is issued a modified risk tobacco product order by the 5
secretary of the United States department of health and human 6
services pursuant to Title 21 U.S.C. Sec. 387k (g)(1), or by ((twenty-7
five)) 25 percent if that same product is issued a modified risk 8
tobacco product order by the secretary of the United States 9
department of health and human services pursuant to Title 21 U.S.C. 10
Sec. 387k (g)(2). The tax reduction applies during the period the 11
modified risk tobacco product order is in effect; 12
(c) For moist snuff, as established in this subsection (1)(c) and 13
computed on the net weight listed by the manufacturer:14
(i) On each single unit consumer-sized can or package whose net 15
weight is ((one and two-tenths )) 1.2 ounces or less, a rate per 16
single unit that is equal to the greater of ((2.526 dollars)) $2.776 17
or ((eighty-three and one-half )) 83.5 percent of the cigarette tax 18
under chapter 82.24 RCW multiplied by ((twenty)) 20; or19
(ii) On each single unit consumer-sized can or package whose net 20
weight is more than ((one and two-tenths )) 1.2 ounces, a 21
proportionate tax at the rate established in (c)(i) of this 22
subsection (1) on each ounce or fractional part of an ounce; and23
(d) For little cigars, an amount per cigar equal to the cigarette 24
tax under chapter 82.24 RCW. 25
(2) Taxes under this section must be imposed at the time the 26
distributor (a) brings, or causes to be brought, into this state from 27
without the state tobacco products for sale, (b) makes, manufactures, 28
fabricates, or stores tobacco products in this state for sale in this 29
state, (c) ships or transports tobacco products to retailers in this 30
state, to be sold by those retailers, or (d) handles for sale any 31
tobacco products that are within this state but upon which tax has 32
not been imposed. 33
(3) The moneys collected under this section must be deposited 34
into the state general fund. 35
NEW SECTION. Sec. 4. This act takes effect October 1, 2025.36
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