This bill introduces a new excise tax of $0.10 per cigarette in addition to existing taxes on cigarettes, vapor products, and tobacco products in Washington State. The revenues generated from this new tax will be allocated to various accounts starting July 1, 2027. Specifically, the first $10 million collected annually will go to the newly created time sensitive emergency system account, which will fund emergency health services. An additional $2 million will be directed to the supplemental nicotine and tobacco enforcement account, and any shortfall in the existing cancer research fund will be supplemented from this new tax. Furthermore, beginning July 1, 2028, 10% of the revenues will be allocated to the foundational public health services account.

The bill also amends existing laws regarding the taxation of vapor and tobacco products, changing the tax rate for vapor products to 95% of the taxable sales price and increasing the maximum tax on cigars to $0.85 each. It establishes definitions for various terms related to vapor products and clarifies the distribution of tax revenues, ensuring that funds are used for public health education, cessation services, and cancer research. The act is set to take effect on July 1, 2027.

Statutes affected:
Original bill: 82.25.010, 82.26.020, 82.25.015
Substitute bill: 82.25.010, 82.25.005, 69.50.101, 82.25.015, 43.348.080