Analysis Complete for Engrossed Substitute Senate Bill 5986
Office of the Governor / Office of Financial Management sent this bulletin at 05/13/2019 04:02 PM 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 |
Business & Occupation Tax |
Retail Sales Tax |
Vapor Products Tax |
Total |
|
|
|
|||||
|
2020 |
$ 26,000 |
$ 356,000 |
$ 4,208,000 |
$ 4,590,000 |
|
|
2021 |
81,000 |
1,121,000 |
7,906,000 |
$ 9,108,000 |
|
|
2022 |
127,000 |
1,757,000 |
9,618,000 |
$ 11,502,000 |
|
|
2023 |
177,000 |
2,444,000 |
11,454,000 |
$ 14,075,000 |
|
|
2024 |
184,000 |
2,543,000 |
11,918,000 |
$ 14,645,000 |
|
|
2025 |
192,000 |
2,646,000 |
12,400,000 |
$ 15,238,000 |
|
|
2026 |
199,000 |
2,752,000 |
12,898,000 |
$ 15,849,000 |
|
|
2027 |
207,000 |
2,863,000 |
13,418,000 |
$ 16,488,000 |
|
|
2028 |
216,000 |
2,978,000 |
13,956,000 |
$ 17,150,000 |
|
|
2029 |
224,000 |
3,097,000 |
14,514,000 |
$ 17,835,000 |
|
|
Total: |
$ 1,633,000 |
$ 22,557,000 |
$ 112,290,000 |
$ 136,480,000 |
|
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 10 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 60 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.