Notice of Complete Analysis of Substitute Senate Bill 5986
Office of the Governor / Office of Financial Management sent this bulletin at 05/08/2019 09:45 AM PDT
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The Office of Financial Management has identified Substitute Senate Bill 5986 as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.
Ten-year projection:
|
Fiscal |
B&O Tax |
Retail Sales Tax |
Vapor Tax |
Total |
|
|
|
|||||
|
2020 |
$ 15,000 |
$ 205,000 |
$ 2,168,000 |
$ 2,388,000 |
|
|
2021 |
62,000 |
854,000 |
4,076,000 |
$ 4,992,000 |
|
|
2022 |
105,000 |
1,445,000 |
4,958,000 |
$ 6,508,000 |
|
|
2023 |
151,000 |
2,083,000 |
5,904,000 |
$ 8,138,000 |
|
|
2024 |
157,000 |
2,167,000 |
6,144,000 |
$ 8,468,000 |
|
|
2025 |
163,000 |
2,256,000 |
6,392,000 |
$ 8,811,000 |
|
|
2026 |
170,000 |
2,346,000 |
6,648,000 |
$ 9,164,000 |
|
|
2027 |
177,000 |
3,431,000 |
6,916,000 |
$ 10,524,000 |
|
|
2028 |
184,000 |
2,538,000 |
7,194,000 |
$ 9,916,000 |
|
|
2029 |
191,000 |
2,640,000 |
7,482,000 |
$ 10,313,000 |
|
|
Total: |
$ 1,375,000 |
$ 19,965,000 |
$ 57,882,000 |
$ 79,222,000 |
|
The Department of Health will not collect any revenue therefore no cash receipts.
This bill defines "vapor product" as any noncombustible product containing a solution, regardless of whether it contains nicotine, which employs a mechanical heating element, battery, or electronic circuit regardless of shape or size that can be used to produce vapor from the solution or other substance, including an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, any vapor cartridge or other container, or similar product or device.
This bill would tax vapor products at 5 cents/milliliter of solution, regardless of whether it contains nicotine. The tax is imposed based on the volume of solution as listed by the manufacturer.
"Heated tobacco products" would also be taxed, at the rate of 40 cents per ounce of tobacco and is imposed based on the net weight of tobacco as listed by the manufacturer.
No cash receipt impact to the Washington State Liquor and Cannabis Board ("Board") as the Department of Revenue (DOR) would be the agency responsible for collecting the new taxes.