The Washington state legislature is moving forward with a new bill that would add products such as nicotine packs to the current “other tobacco products” tax, which would be taxed at 95 percent of their sale price.
Key points:
1. Washington State promotes HB 2033, which intends to include nicotine bags and other products in the scope of tobacco product taxation.
2. Supporters say it will help reduce youth use of nicotine products, while opponents fear it will exacerbate the problem of smuggling.
3. If passed, the new tax rate will come into effect on January 1, 2026.
According to Nbcrightnow reported on April 8, the Washington State Legislature is advancing a new bill that would expand taxes on nicotine products.
HB 2033, introduced by Rep. Monica Jurado Stonier of Vancouver, seeks to bring products such as nicotine bags under the current “Other tobacco products” (OTP) tax.
The bill proposes to expand the definitions of “wet snus” and “tobacco products” to include products that contain nicotine, whether derived from tobacco or synthetic. Supporters argue that raising taxes on nicotine products would help reduce youth use.
The American Cancer Society supported the bill at a public hearing on April 8, with Audrey Miller-Garcia saying that all tobacco products should be taxed at the same rate to encourage smoking cessation, rather than switching to cheaper products.
Crystal Leatherman of the Washington Retail Association said smuggling of cigarettes and tobacco products is a problem because of the state’s high tax rates. High taxes on products seen as smoking cessation tools could exacerbate the problem.
According to the proposal,
- Cigars will be taxed at 95 percent of the sales price, up to 65 cents per cigar;
- Cigarillos will be priced at 15.125 cents each;
- Wet snuff: $2.526 per can of 1.2 ounces or less and $2.105 per ounce of more than 1.2 ounces;
- All other tobacco products are taxed at 95% of the sale price.
If the bill passes the full Assembly and is signed by the governor, it will go into effect on January 1, 2026.
