Analysis Complete for Engrossed Second Substitute House Bill 1873
Office of the Governor / Office of Financial Management sent this bulletin at 05/09/2019 09:49 AM PDT
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The Office of Financial Management has identified this bill 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 |
$ 13,000 |
$ 182,000 |
$ 2,728,000 |
$ 2,923,000 |
|
|
2021 |
107,000 |
1,478,000 |
12,812,000 |
$ 14,397,000 |
|
|
2022 |
159,000 |
2,193,000 |
15,586,000 |
$ 17,938,000 |
|
|
2023 |
215,000 |
2,963,000 |
18,562,000 |
$ 21,740,000 |
|
|
2024 |
223,000 |
3,083,000 |
19,316,000 |
$ 22,622,000 |
|
|
2025 |
232,000 |
3,207,000 |
20,094,000 |
$ 23,533,000 |
|
|
2026 |
242,000 |
3,336,000 |
20,904,000 |
$ 24,482,000 |
|
|
2027 |
251,000 |
3,471,000 |
21,744,000 |
$ 25,466,000 |
|
|
2028 |
262,000 |
3,609,000 |
22,616,000 |
$ 26,487,000 |
|
|
2029 |
272,000 |
3,754,000 |
23,521,000 |
$ 27,547,000 |
|
|
Total: |
$ 1,976,000 |
$ 27,276,000 |
$ 177,883,000 |
$ 207,135,000 |
|
The Department of Health does not collect the revenue associated with this bill.
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 30 cents/milliliter of solution, regardless of whether it contains nicotine, except for refillable cartridges that are 5ml in size or larger, which are taxed at 10 cents/ml. The tax is imposed based on the volume of solution 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.