IPCPR Legislative | Washington

Washington

washington

Washington State Contact Information

Washington Department of Revenue
(800) 647-7706

Washington Public Disclosure Commission

(360) 753-1111
(360) 753-1112 fax
pdc@pdc.wa.gov

Taxation in Washington

 

Washington imposes a tax on the sale, handling, or distribution of all tobacco products in the state. This tax is imposed at the time the distributor: brings, or causes to be brought, into Washington tobacco products for sale; makes, manufactures, fabricates, or stores tobacco products in Washington for sale in the state; ships or transports tobacco products to retailers in Washington, to be sold by those retailers; or handles for sale any tobacco products that are within the state but upon which tax has not been imposed. The distributor who first possesses the tobacco product in Washington is the distributor liable for the tax.

 

Wash. Rev. Code. § 82.26.020: Tax imposed – Deposited into the general fund.
Wash. Rev. Code. § 82.26.030: Legislative intent – Purpose.

 

Staff reported that Washington localities do not levy additional taxes on tobacco products.

The tax on cigars is 95% of the taxable sales price of cigars, not to exceed $0.65 per cigar. The tax on moist snuff is as follows: for each can or package whose net weight is 1.2 ounces or less, the greater of $2.526 or 83.5% of the cigarette tax multiplied by 20; or for each can or package whose net weight is more than 1.2 ounces, a proportionate tax at the rate established above on each ounce or fractional part of an ounce. The tax on little cigars is an amount per cigar equal to the cigarette tax. The tax on all other tobacco products is 95% of the taxable sales price.

 

Wash. Rev. Code. § 82.26.020: Tax imposed – Deposited into the general fund.

Tobacco products distributors are required to file monthly Combined Excise Tax Returns with the Washington State Department of Revenue on or before the 25th of each month, along with payment for taxes due. Taxes may be filed and paid online at https://fortress.wa.gov/dor/efile/FortressLogon/Logon.aspx.

 

Wash. Rev. Code. § 82.32.045: Taxes – When due and payable – Reporting periods – Verified annual returns – Relief from filing requirements.

Definitions in Washington

 

“Smoke” or “smoking” means the carrying or smoking of any kind of lighted pipe, cigar, cigarette, or any other lighted smoking equipment.

 

Wash. Rev. Code. § 70.160.020(1)

 

A “cigar” is a roll for smoking that is of any size or shape and that is made wholly or in part of tobacco, irrespective of whether the tobacco is pure or flavored, adulterated or mixed with any other ingredient, if the roll has a wrapper made wholly or in greater part of tobacco. “Cigar” does not include a cigarette.

 

Wash. Rev. Code. § 82.26.010(5)

 

“Tobacco products” means cigars, cheroots, stogies, periques, granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco, snuff, snuff flour, cavendish, plug and twist tobacco, fine-cut and other chewing tobaccos, shorts, refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking, and any other product, regardless of form, that contains tobacco and is intended for human consumption or placement in the oral or nasal cavity or absorption into the human body by any other means, but does not include cigarettes.

 

Wash. Rev. Code. § 82.26.010(21)

 

“Moist snuff” is tobacco that is finely cut, ground, or powdered; is not for smoking; and is intended to be placed in the oral, but not the nasal, cavity.

 

Wash. Rev. Code. § 82.26.010(13)

 

A “distributor” is:

  • any person engaged in the business of selling tobacco products in Washington who brings, or causes to be brought, into the state any tobacco products for sale
  • any person who makes, manufactures, fabricates, or stores tobacco products in Washington for sale in the state
  • any person engaged in the business of selling tobacco products outside of Washington who ships or transports tobacco products to retailers in the state, to be sold by those retailers
  • any person engaged in the business of selling tobacco products in Washington who handles for sale any tobacco products that are within the state but upon which tax has not been imposed

 

Wash. Rev. Code. § 82.26.010(8)

 

A “retailer” is any person engaged in the business of selling tobacco products to ultimate consumers.

 

Wash. Rev. Code. § 82.26.010(17)

 

A “manufacturer” is a person who manufactures and sells tobacco products.

 

Wash. Rev. Code. § 82.26.010(11)

 

“Taxable sales price” means:

  • In the case of a taxpayer that is not affiliated with the manufacturer, distributor, or other person from whom the taxpayer purchased tobacco products, the actual price for which the taxpayer purchased the tobacco products
  • In the case of a taxpayer that purchases tobacco products from an affiliated manufacturer, affiliated distributor, or other affiliated person, and that sells those tobacco products to unaffiliated distributors, unaffiliated retailers, or ultimate consumers, the actual price for which that taxpayer sells those tobacco products to unaffiliated distributors, unaffiliated retailers, or ultimate consumers
  • In the case of a taxpayer that sells tobacco products only to affiliated distributors or affiliated retailers, the price, determined as nearly as possible according to the actual price, that other distributors sell similar tobacco products of like quality and character to unaffiliated distributors, unaffiliated retailers, or ultimate consumers
  • In the case of a taxpayer that is a manufacturer selling tobacco products directly to ultimate consumers, the actual price for which the taxpayer sells those tobacco products to ultimate consumers
  • In the case of a taxpayer that has acquired tobacco products under a sale as defined in subsection (18)(b) of this section, the price, determined as nearly as possible according to the actual price, that the taxpayer or other distributors sell the same tobacco products or similar tobacco products of like quality and character to unaffiliated distributors, unaffiliated retailers, or ultimate consumers
  • Otherwise, the price, determined as nearly as possible according to the actual price, that the taxpayer or other distributors sell the same tobacco products or similar tobacco products of like quality and character to unaffiliated distributors, unaffiliated retailers, or ultimate consumers

 

Wash. Rev. Code. § 82.26.010(19)

 

“Sale” means any transfer, exchange, or barter, in any manner or by any means whatsoever, for a consideration, and includes and means all sales made by any person. The term “sale” includes a gift by a person engaged in the business of selling tobacco products, for advertising, promoting, or as a means of evading the provisions of state law.

 

Wash. Rev. Code. § 82.26.010(18)

CONTACT IPCPR LEGISLATIVE
Questions? Comments? Interested in Getting Involved? Contact the IPCPR Legislative Team!
CONTACT US
Thank You. We will contact you as soon as possible.