MYNORTHWEST POLITICS

Proposed tobacco and vapor tax hike would make small dent in $14 billion deficit

Feb 24, 2025, 5:05 AM

Photo: A man smokes along a road. (Photo: Firdous Nazir/NurPhoto via Getty Images) - tobacco...

A man smokes along a road. (Photo: Firdous Nazir/NurPhoto via Getty Images)

(Photo: Firdous Nazir/NurPhoto via Getty Images)

Washington is facing a massive $10 to $14 billion budget deficit, depending on which side of the aisle you’re speaking to. With the clock ticking and pressure mounting, state lawmakers have introduced a new bill aimed at raising revenue through higher taxes on tobacco and vapor products.

House Bill 1416 could generate $91 million for the state’s general fund over the next six years — an important, though small, step in helping to close the state’s budget gap.

The democratically sponsored bill targets three key areas: cigarettes, tobacco products and vapor products. It’s a clear attempt to hit both smokers and vapers where it hurts most — right in the wallet.

Cigarette taxes on the rise

The first big change in the bill is a new cigarette tax of $0.015 per cigarette. That’s 30 cents per pack, and it’s added on top of the existing taxes, which already total $3.025 per pack. Yes, you read that correctly — smoking would get a whole lot more expensive in Washington.

Currently, there are two taxes on cigarettes in Washington. The new addition would bump the overall tax to a neat $3.055 per pack. While it’s not a game-changer on its own, the state hopes this increase will encourage smokers to quit while also generating a steady stream of revenue.

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More taxes on tobacco products

The tax hike doesn’t stop with cigarettes. The bill also targets tobacco products like cigars, moist snuff, and other tobacco-related goods. For cigars, taxes will increase to 95% of the sales price, but there’s a cap of 72 cents per cigar. Little cigars will be taxed at 16.6 cents per stick, while moist snuff will face tax increases depending on the size of the can.

For example, cans weighing 1.2 ounces or less will be taxed at $2.776, while larger cans will be taxed at $2.313 per ounce. These increases are designed to discourage the consumption of tobacco products while boosting state revenues.

Vapor products face steeper taxes too

Vapor products, which have gained in popularity in recent years, aren’t getting off easy either. The bill proposes increasing the vapor products tax to 10 cents per milliliter for containers over 5 milliliters, and 30 cents per milliliter for all other vapor products. Currently, the tax rate is much lower, so this increase will likely raise the price of your favorite vape juice quite a bit.

The revenue from vapor taxes won’t go to the general fund, instead, it would be split between two specific funds: the Andy Hill Cancer Research Endowment Fund and the Foundational Public Health Services account.

The bill had its first public hearing in front of the House Finance Committee on Thursday, with several healthcare organizations testifying in favor, while business lobbyists and vape makers testified against it.

Since the bill generates revenue for the state, it could be voted on by the committee or the entire House at any time.

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Matt Markovich is the KIRO Newsradio political analyst.

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Proposed tobacco and vapor tax hike would make small dent in $14 billion deficit