Status Summary

First reading, referred to Finance on 2.4.19. Public hearing in the House Committee on Finance on 2.26.19. Executive action taken in in the House Committee on Finance on 3.14.19; 1st substitute bill passed. Referred to Appropriations on 3.19.19. Public hearing and executive action taken in the House Committee on Appropriations; 2nd substitute bill passed on 4.22.19. Placed on second reading on 4.25.19. 2nd substitute bill substituted. Floor amendment(s) adopted. Rules suspended. Placed on Third Reading. Third reading, passed on 4.26.19. In the Senate: First reading, referred to Ways & Means on 4.26.19. Public hearing and executive action taken in the Senate Committee on Ways & Means on 4.27.19; majority do pass with amendment(s). Minority; without recommendation. Passed to Rules Committee for second reading on 4.28.19. Placed on second reading by Rules Committee on 4.28.19. Committee amendment(s) adopted as amended. Rules suspended. Placed and passed on Third Reading on 4. 28.19. In the House: House concurred on Senate amendments; passed the bill, final passage on 4.28.19. Speaker signed on 4.28.19. In the Senate: President signed on 4.28.19. Other than legislative action: Delivered to Governor on 4.28.19. (updated 5.3.19)

Legislative Session

2019

Status

Passed

Sponsor

Pollet

HB 1873 intends to tax vapor products, such as electronic cigarettes, electronic devices, and vape pens pursuant to RCW chapter 82.26.

The legislature finds that these vapor products are in fact “tobacco products,” and that manufacturers, wholesalers, and retailers have not been paying the tax levied on tobacco products. Therefore, recognition of the application of this tax will resolve claims of non-payment of tobacco product taxes, decrease youth access, and provide funding for nicotine and other drug use prevention.

Also amends RCW 70.345.090 to include subsection (8), which specifies the tax imposed on sales of vaporized tobacco products.

Furthermore, a new section is added to RCW 82.26 which creates the Essential Public Health Services Account in the state treasury, in which 75% of the money collected from the tax must be deposited. The money must be used for:

  • funding foundational health services;
  • funding tobacco, vapor product, nicotine control and prevention;
  • at least 10% of the funds must be used to support increased access and training of public health professionals; and
  • funding enforcement by the state liquor & cannabis board to prevent sales of vapor products to minors.

Also amends RCW 82.26.010 to include subsection (21)(b)-(c), such that “tobacco products,” includes vapor products.

Amendments:

Updated on 4.12.19:

1st substitute:

  • Established the vapor products tax in a new chapter of the RCW, rather than tax them as an Other Tobacco Product.
  • The taxation rate is 60 percent instead of 95 percent.
  • Provisions related to taxation of preexisting inventories, bundled transactions, tribal compacting, and enforcement and record keeping are added in the substitute.
  • Distributions from the Account are modified.