Tag: taxes

  • Washington: More Tax Hikes Proposed

    Washington: More Tax Hikes Proposed

    On January 20, the state of Washington saw two bills proposed, House Bill 1416 and House Bill 1417, that would further hike the state’s higher-than-average tobacco taxes. We reported that the two bills would add an additional 33 cents of taxes per pack of cigarettes (currently based at $4.035 before any local sales taxes), and that “existing taxes on most vape juices, cigars, and other products would be raised.”

    Writing for Halfwheel, Patrick Lagreid dug into the actual increases on several nicotinereu products. Washington has a tax rate of 95% of the taxable sales price, maintaining a cap on the maximum tax that can be charged. Lagreid said the cap on premium cigars would be raised from 65 cents to 72 cents.

    “The bill also raises the tax on vapor products from 27 cents to 30 cents per milliliter of solution, while what are described as ‘accessible containers of solution’ will go from nine cents to 10 cents per milliliter, regardless of whether or not they contain nicotine,” he wrote. “Moist snuff would also see an increase, going from $2.526 to $2.776 per package of 1.2 ounces or less, though there is a provision that the tax must be at least that amount or 83.5% of the cigarette tax.”

    The bills were proposed by Rep. Kristine Reeves and referred to the House Committee on Finance for initial rounds of debate. If passed as written, the increases would go into effect October 1.

  • Washington State Wants High Taxes Higher

    Washington State Wants High Taxes Higher

    The state of Washington saw two bills proposed this week that would further hike the state’s higher-than-average tobacco taxes. Rep. Kristine Reeves proposed House Bill 1416 and House Bill 1417 with a number of other Democrat cosponsors. Both measures impose additional taxes on those already in place for tobacco products. 

    HB 1416 imposes a new $0.015 per cigarette tax, about 30 cents for a standard pack. It also raises existing taxes on most vape juices, cigars, and other products. HB 1417 imposes a new $0.0015 per cigarette “embodied carbon tax,” about 3 cents a pack.

    These proposals are in addition to the taxes already in place, including $3.025 tax per pack from the state, $1.01 per pack federal, and other local sales taxes. Reeves also wants to ban flavored tobacco products.

    Because Washington has some of the nation’s highest tax rates on nicotine products, it, according to the Tax Foundation, also has some of the highest smuggling and counterfeit rates, costing the state an estimated $178.8 million in revenue. 

    According to HB 1416, revenue from vape products would be split evenly between cancer research and public health services, however, revenue from other taxed products would go directly to the general fund. The revenue from HB 1417 would go to the general fund and would be earmarked to “counteract carbon emissions,” but the bill does not explain how that would work. Coincidentally, both proposals come as the state anticipates a revenue shortfall between $10 billion and $16 billion over the next four years.