wa-law.org > bill > 2025-26 > HB 2382 > Substitute Bill
In addition to the tax imposed upon the sale, use, consumption, handling, possession, or distribution of cigarettes set forth in RCW 82.24.020 and 82.24.026, there is imposed a tax of $0.10 per cigarette.
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Except as provided in subsections (b), (c), and (d) of this subsection (2), all revenues collected under this section must be deposited into the general fund.
Beginning July 1, 2027, the first $10,000,000 of revenues collected under this section per fiscal year must be deposited into the time sensitive emergency system account created in section 2 of this act.
Beginning July 1, 2027, the next $2,000,000 of revenues collected under this section per fiscal year above the amount in (b) of this subsection (2) must be deposited into the supplemental nicotine and tobacco enforcement account created in section 3 of this act.
Beginning July 1, 2027, to the extent the tax imposed under RCW 82.25.010 results in less than $10,000,000 annually to the Andy Hill cancer research endowment fund match transfer account in RCW 43.348.080, the remaining amount to reach $10,000,000 annually must be deposited into the Andy Hill cancer research endowment fund match transfer account from the additional tax in this section.
Beginning July 1, 2028, 10 percent of revenues collected under this section above the amounts in (b) and (d) of this subsection (2) must be deposited into the foundational public health services account created in RCW 82.25.015.
The time sensitive emergency system account is created in the state treasury. The first $10,000,000 in revenues per fiscal year collected under section 1 of this act must be deposited into the account. Moneys in the account may be spent only after appropriation. Moneys in the account must be used by the department of health to fund a time sensitive emergency system, including for heart attack, cardiac arrest, and stroke, and may be used to fund activities under chapter 70.168 RCW.
The supplemental nicotine and tobacco enforcement account is created in the state treasury. After the distribution required by section 1(2)(b) of this act, the next $2,000,000 in revenues per fiscal year collected under section 1 of this act must be deposited into the account. Moneys in the account may be spent only after appropriation. Moneys in the account must be used by the board for enforcement of this chapter and chapters 70.345, 82.24, 82.25, and 82.26 RCW.
at the rate of 95 percent of the taxable sales price.
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The tax under this section must be collected at the time the distributor: (i) Brings, or causes to be brought, into this state from without the state vapor products for sale; (ii) makes, manufactures, fabricates, or stores vapor products in this state for sale in this state; (iii) ships or transports vapor products to retailers or consumers in this state; or (iv) handles for sale any vapor products that are within this state but upon which tax has not been imposed.
The tax imposed under this section must also be collected by the department from the consumer of vapor products where the tax imposed under this section was not paid by the distributor on such vapor products.
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The moneys collected under this section must be deposited as follows:
Fifty percent into the Andy Hill cancer research endowment fund match transfer account created in RCW 43.348.080; and
Fifty percent into the foundational public health services account created in RCW 82.25.015.
The funding provided under this subsection is intended to supplement and not supplant general fund investments in cancer research and foundational public health services.
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
"Accessible container" means a container that is intended to be opened. The term does not mean a closed cartridge or closed container that is not intended to be opened such as a disposable e-cigarette.
"Affiliated" means related in any way by virtue of any form or amount of common ownership, control, operation, or management.
"Board" means the Washington state liquor and cannabis board.
"Business" means any trade, occupation, activity, or enterprise engaged in selling or distributing vapor products in this state.
"Distributor" means any person:
Engaged in the business of selling vapor products in this state who brings, or causes to be brought, into this state from outside the state any vapor products for sale;
Who makes, manufactures, fabricates, or stores vapor products in this state for sale in this state;
Engaged in the business of selling vapor products outside this state who ships or transports vapor products to retailers or consumers in this state; or
Engaged in the business of selling vapor products in this state who handles for sale any vapor products that are within this state but upon which tax has not been imposed.
"Indian country" has the same meaning as provided in RCW 82.24.010.
"Manufacturer" has the same meaning as provided in RCW 70.345.010.
"Manufacturer's representative" means a person hired by a manufacturer to sell or distribute the manufacturer's vapor products and includes employees and independent contractors.
"Person" means: Any individual, receiver, administrator, executor, assignee, trustee in bankruptcy, trust, estate, firm, copartnership, joint venture, club, company, joint stock company, business trust, municipal corporation, corporation, limited liability company, association, or society; the state and its departments and institutions; any political subdivision of the state of Washington; and any group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise. Except as provided otherwise in this chapter, "person" does not include any person immune from state taxation, including the United States or its instrumentalities, and federally recognized Indian tribes and enrolled tribal members, conducting business within Indian country.
"Place of business" means any place where vapor products are sold or where vapor products are manufactured, stored, or kept for the purpose of sale, including any vessel, vehicle, airplane, or train.
"Retail outlet" has the same meaning as provided in RCW 70.345.010.
"Retailer" has the same meaning as provided in RCW 70.345.010.
"Sale" has the same meaning as provided in RCW 70.345.010.
"Taxpayer" means a person liable for the tax imposed by this chapter.
"Vapor product" means any noncombustible product containing a solution or other consumable substancethat contains nicotine, which employs a mechanical heating element, battery, or electronic circuit regardless of shape or size that can be used to produce vapor from the solution or other substance, including an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device. The term also includes any cartridge or other container of liquid nicotine, solution, or other consumable substance, that contains nicotine, that is intended to be used with or in a device that can be used to deliver aerosolized or vaporized nicotine to a person inhaling from the device and is sold for such purpose.
The term does not include:
Any product approved by the United States food and drug administration for sale as a tobacco cessation product, medical device, or for other therapeutic purposes when such product is marketed and sold solely for such an approved purpose;
Any product that will become an ingredient or component in a vapor product manufactured by a distributor;
Any product that meets the definition of cannabis, useable cannabis, cannabis concentrates, cannabis-infused products, cigarette, or tobacco products; or
Any product, solution, or other consumable substance that would meet the definition of vapor product except for the product, solution, or other consumable substance does not contain any nicotine.
For purposes of this subsection (15):
"Cigarette" has the same meaning as provided in RCW 82.24.010; and
"Cannabis," "useable cannabis," "cannabis concentrates," and "cannabis-infused products" have the same meaning as provided in RCW 69.50.101.
There is levied and collected a tax upon the sale, handling, or distribution of all tobacco products in this state at the following rate:
For cigars except little cigars, ninety-five percent of the taxable sales price of cigars, not to exceed $0.85 per cigar;
For all tobacco products except those covered under separate provisions of this subsection, ninety-five percent of the taxable sales price. The tax imposed on a product under this subsection must be reduced by 50 percent if that same product is issued a modified risk tobacco product order by the secretary of the United States department of health and human services pursuant to Title 21 U.S.C. Sec. 387k(g)(1), or by 25 percent if that same product is issued a modified risk tobacco product order by the secretary of the United States department of health and human services pursuant to Title 21 U.S.C. Sec. 387k(g)(2). The tax reduction applies during the period the modified risk tobacco product order is in effect;
For moist snuff, as established in this subsection (1)(c) and computed on the net weight listed by the manufacturer:
On each single unit consumer-sized can or package whose net weight is one and two-tenths ounces or less, a rate per single unit that is equal to the greater of 2.526 dollars or eighty-three and one-half percent of the cigarette tax under chapter 82.24 RCW multiplied by twenty; or
On each single unit consumer-sized can or package whose net weight is more than one and two-tenths ounces, a proportionate tax at the rate established in (c)(i) of this subsection (1) on each ounce or fractional part of an ounce; and
For little cigars, an amount per cigar equal to the cigarette tax under chapter 82.24 RCW.
Taxes under this section must be imposed at the time the distributor (a) brings, or causes to be brought, into this state from without the state tobacco products for sale, (b) makes, manufactures, fabricates, or stores tobacco products in this state for sale in this state, (c) ships or transports tobacco products to retailers in this state, to be sold by those retailers, or (d) handles for sale any tobacco products that are within this state but upon which tax has not been imposed.
(a) Except as provided in subsection (b) of this section, moneys collected under this section must be deposited into the state general fund.
The foundational public health services account is created in the state treasury. Half of all of the moneys collected from the tax imposed on vapor products under RCW 66.44.010 must be deposited into the account. Beginning July 1, 2028, 10 percent of specified revenues collected under section 1 of this act, and 10 percent of all revenues collected under RCW 82.26.020, must also be deposited into the account. Moneys in the account may be spent only after appropriation. Moneys in the account are to be used to fund: Education about the health risks and harms associated with the use of cigarettes, tobacco products, and vapor products; cessation services for persons seeking to stop the use of cigarettes, tobacco products, or vapor products; and foundational health services.
The Andy Hill cancer research endowment fund match transfer account is created in the custody of the state treasury to be used solely and exclusively for the program created in RCW 43.348.040. Moneys in the account may be spent only after appropriation. The purpose of the account is to provide state matching funds and other state appropriations for the fund and administrative costs. Expenditures to fund or reimburse the program administrator are not subject to the requirements of subsection (5) of this section.
The legislature must appropriate a state match, up to a maximum of ten million dollars annually, beginning July 1, 2016, and each July 1st following the end of the fiscal year from tax collections and penalties generated from enforcement of state taxes on cigarettes and other tobacco products by the state liquor and cannabis board or other federal, state or local law or tax enforcement agency, as determined by the department of revenue. Tax collections include any cigarette tax, other tobacco product tax, and retail sales and use tax. Any amounts collected from the tax imposed under RCW 82.25.010 in excess of $10,000,000 annually for deposit into the Andy Hill cancer research endowment fund match transfer account must be deposited into the foundational public health services account created in RCW 82.25.015. To the extent the tax imposed under RCW 82.25.010 results in less than $10,000,000 annually to the Andy Hill cancer research endowment fund match transfer account, the remaining amount to reach $10,000,000 annually must be deposited into this account from the additional tax in section 1 of this act.
Revenues to the account must consist of deposits into the account, taxes imposed on vapor products under RCW 82.25.010, legislative appropriations, and any gifts, grants, or donations received by the department for this purpose. Revenues to the account may also consist of revenues from the additional tax in section 1 of this act as provided in section 1(2)(d) of this act and subsection (2) of this section.
Each fiscal biennium, the legislature must appropriate to the department of commerce such amounts as estimated to be the balance of the match transfer account to provide state matching funds.
Expenditures from the account may be made only upon receipt of proof from the program administrator of committed nonstate or private contributions for cancer research, prevention, or care supported by the match transfer account or advancement of the program. Expenditures from the match transfer account, in the form of matching funds, may not exceed the total amount of committed nonstate or private contributions.
The department and board must enter into an appropriate agreement with the program administrator to demonstrate exchange of consideration for the expenditures from the match transfer account that are subject to subsection (5) of this section.
Moneys expended into the account in fiscal year 2023 pursuant to section 706, chapter 297, Laws of 2022 are not subject to the requirements of subsections (5) and (6) of this section.
Moneys expended into the match transfer account for the purposes of implementing RCW 43.348.090 are not subject to the requirements of subsections (5) and (6) of this section.
This act takes effect July 1, 2027.