Tobacco product excise taxes

AN ACT Relating to excise taxes on cigarettes, vapor products, 1
and tobacco products; amending RCW 82.25.010, 82.26.020, and 2
82.25.015; adding new sections to chapter 82.24 RCW; adding a new 3
section to chapter 70.155 RCW; and providing an effective date.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 82.24 6
RCW to read as follows: 7
(1) In addition to the tax imposed upon the sale, use, 8
consumption, handling, possession, or distribution of cigarettes set 9
forth in RCW 82.24.020 and 82.24.026, there is imposed a tax of $0.10 10
per cigarette. 11
(2)(a) Except as provided in subsections (b), (c), and (d) of 12
this subsection (2), all revenues collected under this section must 13
be deposited into the general fund. 14
(b) Beginning July 1, 2026, the first $10,000,000 of revenues 15
collected under this section per fiscal year must be deposited into 16
the time sensitive emergency system account created in section 2 of 17
this act. 18
(c) Beginning July 1, 2026, the next $2,000,000 of revenues 19
collected under this section per fiscal year above the amount in (b) 20
of this subsection (2) must be deposited into the supplemental 21
H-2775.1
HOUSE BILL 2382
State of Washington 69th Legislature 2026 Regular Session
By Representatives Parshley, Ryu, Reed, Doglio, Macri, Thai, and
Pollet
Prefiled 01/09/26. Read first time 01/12/26. Referred to Committee
on Finance.
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nicotine and tobacco enforcement account created in section 3 of this 1
act. 2
(d) Beginning July 1, 2028, 10 percent of revenues collected 3
under this section above the amounts in (b) and (c) of this 4
subsection (2) must be deposited into the foundational public health 5
services account created in RCW 82.25.015. 6
NEW SECTION. Sec. 2. A new section is added to chapter 82.24 7
RCW to read as follows: 8
The time sensitive emergency system account is created in the 9
state treasury. The first $10,000,000 in revenues per fiscal year 10
collected under section 1 of this act must be deposited into the 11
account. Moneys in the account may be spent only after appropriation. 12
Moneys in the account must be used by the department of health to 13
fund a time sensitive emergency system, including for heart attack, 14
cardiac arrest, and stroke, and may be used to fund activities under 15
chapter 70.168 RCW. 16
NEW SECTION. Sec. 3. A new section is added to chapter 70.155 17
RCW to read as follows: 18
The supplemental nicotine and tobacco enforcement account is 19
created in the state treasury. After the distribution required by 20
section 1 (2)(b) of this act, the next $2,000,000 in revenues per 21
fiscal year collected under section 1 of this act must be deposited 22
into the account. Moneys in the account may be spent only after 23
appropriation. Moneys in the account must be used by the board for 24
enforcement of this chapter and chapters 70.345, 82.24, 82.25, and 25
82.26 RCW. 26
Sec. 4. RCW 82.25.010 and 2019 c 445 s 102 are each amended to 27
read as follows: 28
(1)(((a))) There is levied and collected a tax upon the sale, 29
use, consumption, handling, possession, or distribution of all vapor 30
products in this state ((as follows:31
(i) All vapor products other than those taxed under (a)(ii) of 32
this subsection are taxed at a rate equal to twenty-seven cents per 33
milliliter of solution, regardless of whether it contains nicotine, 34
and a proportionate tax at the like rate on all fractional parts of a 35
milliliter thereof.36
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(ii) Any accessible container of solution, regardless of whether 1
it contains nicotine, that is greater than five milliliters, is taxed 2
at a rate equal to nine cents per milliliter of solution and a 3
proportionate tax at the like rate on all fractional parts of a 4
milliliter thereof.5
(b) The tax in this section must be imposed based on the volume 6
of the solution as listed by the manufacturer )) at the rate of 95 7
percent of the taxable sales price. 8
(2)(a) The tax under this section must be collected at the time 9
the distributor: (i) Brings, or causes to be brought, into this state 10
from without the state vapor products for sale; (ii) makes, 11
manufactures, fabricates, or stores vapor products in this state for 12
sale in this state; (iii) ships or transports vapor products to 13
retailers or consumers in this state; or (iv) handles for sale any 14
vapor products that are within this state but upon which tax has not 15
been imposed. 16
(b) The tax imposed under this section must also be collected by 17
the department from the consumer of vapor products where the tax 18
imposed under this section was not paid by the distributor on such 19
vapor products. 20
(3)(a) The moneys collected under this section must be deposited 21
as follows: 22
(i) Fifty percent into the Andy Hill cancer research endowment 23
fund match transfer account created in RCW 43.348.080; and24
(ii) Fifty percent into the foundational public health services 25
account created in RCW 82.25.015. 26
(b) The funding provided under this subsection is intended to 27
supplement and not supplant general fund investments in cancer 28
research and foundational public health services. 29
Sec. 5. RCW 82.26.020 and 2019 c 445 s 404 are each amended to 30
read as follows: 31
(1) There is levied and collected a tax upon the sale, handling, 32
or distribution of all tobacco products in this state at the 33
following rate: 34
(a) For cigars except little cigars, ninety-five percent of the 35
taxable sales price of cigars, not to exceed ((sixty-five cents )) 36
$0.85 per cigar; 37
(b) For all tobacco products except those covered under separate 38
provisions of this subsection, ninety-five percent of the taxable 39
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sales price. The tax imposed on a product under this subsection must 1
be reduced by ((fifty)) 25 percent if that same product is issued a 2
modified risk tobacco product order by the secretary of the United 3
States department of health and human services pursuant to Title 21 4
U.S.C. Sec. 387k (g)(1), or by ((twenty-five)) 12.5 percent if that 5
same product is issued a modified risk tobacco product order by the 6
secretary of the United States department of health and human 7
services pursuant to Title 21 U.S.C. Sec. 387k (g)(2). The tax 8
reduction applies during the period the modified risk tobacco product 9
order is in effect; 10
(c) For moist snuff, as established in this subsection (1)(c) and 11
computed on the net weight listed by the manufacturer:12
(i) On each single unit consumer-sized can or package whose net 13
weight is one and two-tenths ounces or less, a rate per single unit 14
that is equal to the greater of 2.526 dollars or eighty-three and 15
one-half percent of the cigarette tax under chapter 82.24 RCW 16
multiplied by twenty; or 17
(ii) On each single unit consumer-sized can or package whose net 18
weight is more than one and two-tenths ounces, a proportionate tax at 19
the rate established in (c)(i) of this subsection (1) on each ounce 20
or fractional part of an ounce; and 21
(d) For little cigars, an amount per cigar equal to the cigarette 22
tax under chapter 82.24 RCW. 23
(2) Taxes under this section must be imposed at the time the 24
distributor (a) brings, or causes to be brought, into this state from 25
without the state tobacco products for sale, (b) makes, manufactures, 26
fabricates, or stores tobacco products in this state for sale in this 27
state, (c) ships or transports tobacco products to retailers in this 28
state, to be sold by those retailers, or (d) handles for sale any 29
tobacco products that are within this state but upon which tax has 30
not been imposed. 31
(3) ((The)) (a) Except as provided in subsection (b) of this 32
section, moneys collected under this section must be deposited into 33
the state general fund. 34
(b) Beginning July 1, 2028, 10 percent of the revenues collected 35
under this section must be deposited into the foundational public 36
health services account created in RCW 82.25.015.37
Sec. 6. RCW 82.25.015 and 2023 c 435 s 9 are each amended to 38
read as follows: 39
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The foundational public health services account is created in the 1
state treasury. Half of all of the moneys collected from the tax 2
imposed on vapor products under RCW 66.44.010 must be deposited into 3
the account. Beginning July 1, 2028, 10 percent of specified revenues 4
collected under section 1 of this act, and 10 percent of all revenues 5
collected under RCW 82.26.020, must also be deposited into the 6
account. Moneys in the account may be spent only after appropriation. 7
Moneys in the account are to be used to fund : Education about the 8
health risks and harms associated with the use of cigarettes, tobacco 9
products, and vapor products; cessation services for persons seeking 10
to stop the use of cigarettes, tobacco products, or vapor products; 11
and foundational health services. 12
NEW SECTION. Sec. 7. This act takes effect July 1, 2026.13
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