SHB 2382
In CommitteeHouse
Tobacco product excise taxes
Concerning excise taxes on cigarettes, vapor products, and tobacco products.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill raises tobacco-related taxes—including a new $0.10-per-cigarette tax—and restructures how the revenue is used, dedicating funds to emergency medical systems, enforcement, and public health programs. It also lowers the vapor product tax from a per-milliliter rate to a percentage of sales price and adjusts tobacco product tax rates.
- Imposes a new $0.10 per cigarette excise tax on top of existing cigarette taxes.
- Creates a time-sensitive emergency system account funded by the first $10 million/year of new cigarette tax revenue to support emergency care for heart attacks, cardiac arrest, and stroke.
- Creates a supplemental nicotine and tobacco enforcement account funded by the next $2 million/year of new cigarette tax revenue to support enforcement of tobacco laws.
- Reduces the vapor product tax from 27¢ per milliliter (for most products) to 95% of the taxable sales price, and sets a new 9¢ per milliliter rate for larger containers (>5ml).
- Increases the cigar tax cap from 65¢ to $0.85 per cigar, and adjusts tobacco product tax rates to 95% of sales price (with discounts for FDA-approved modified-risk products).
- Directs 10% of vapor and tobacco tax revenues (starting July 1, 2028) to the foundational public health services account for education, cessation programs, and public health services.
Who is affected
- Tobacco, cigarette, and vapor product users — Residents who use cigarettes, vapor products (e.g., e-cigarettes), or other tobacco products will pay higher taxes on these items due to new per-unit or per-volume taxes and changes to existing tax rates.
- Tobacco and vapor product distributors and retailers — Distributors and retailers of tobacco, vapor, and cigarette products will be responsible for collecting and remitting new or adjusted taxes, and may face increased compliance costs.
- State health and enforcement agencies — State agencies—including the Department of Health and the Tobacco Control Board—will receive dedicated funding to support enforcement, public health programs, and emergency response systems.
- Patients needing emergency medical care — Patients in time-sensitive medical emergencies (e.g., heart attack, stroke) may benefit from improved emergency response systems funded by the new account.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The creation of the time-sensitive emergency system account—funded with the first $10M/year of new cigarette tax revenue—directly supports emergency response systems for heart attacks, cardiac arrest, and stroke, which will improve survival outcomes for all Washingtonians, especially in rural and underserved areas where emergency care access is limited.
Public SafetyPeopleRef: Sec. 2, Sec. 1(2)(b)Dedicated $2M/year for tobacco law enforcement will strengthen oversight of illegal tobacco sales (e.g., to minors, counterfeit products), reducing youth access and protecting public health—particularly in communities disproportionately targeted by predatory tobacco marketing.
Public SafetyPeopleRef: Sec. 3, Sec. 1(2)(c)Funding for foundational public health services—including education, cessation programs, and health services—will expand access to evidence-based smoking and vaping cessation, especially for low-income, Medicaid-eligible, and underserved populations who face higher tobacco-related disease burdens.
HealthcarePeopleRef: Sec. 6, Sec. 1(2)(d), Sec. 5(3)(b)The shift to a 95% ad valorem tax on vapor products—coupled with the 9¢/ml rate for larger containers—creates a more stable and predictable revenue stream while discouraging high-volume, low-cost vaping; this structural change may reduce youth vaping initiation and long-term addiction, especially when combined with public health funding.
HealthcarePeopleRef: Sec. 4(1), Sec. 5(1)(a)The modified-risk tobacco product (MRTP) tax reductions—25% for FDA-authorized reduced-risk orders and 12.5% for modified-risk orders—create an incentive for manufacturers to develop and submit safer products, potentially lowering long-term health risks for users who cannot or choose not to quit entirely.
HealthcareLean peopleRef: Sec. 5(1)(a), Sec. 5(1)(c)
Potential Concerns (5)
The bill increases taxes on tobacco, cigarette, and vapor products—particularly shifting vapor product taxation from a per-milliliter rate to a 95% ad valorem rate—which disproportionately raises costs for low-income users, who spend a larger share of income on these products and are less able to absorb price increases.
FinancialIndustryRef: Sec. 1(2)(a), Sec. 4(3)(a), Sec. 5(3)(a)The vapor product tax change from 27¢/ml to 95% of sales price significantly increases the tax burden on premium and high-end vape products (e.g., premium e-liquids, desktop devices), which are more commonly purchased by higher-income consumers—but the 9¢/ml rate for containers >5ml creates a regressive structure that still penalizes budget-conscious users who buy larger-volume, lower-cost products.
FinancialIndustryRef: Sec. 4(1), Sec. 5(1)(a)The cigar tax cap increase from $0.65 to $0.85 per cigar and the 95% ad valorem rate for other tobacco products may reduce margins for small retailers—especially convenience stores and tobacco shops—potentially leading to reduced hours, staff cuts, or closures in low-income neighborhoods where such stores are common.
Business & EmploymentIndustryRef: Sec. 5(1)(a), Sec. 5(1)(c)The bill eliminates the Andy Hill Cancer Research Endowment Fund match transfer account for vapor product tax revenue (previously 50% of vapor tax), reducing dedicated funding for cancer research—despite the bill's public health framing—potentially slowing progress in early detection and treatment, especially for underserved communities with higher cancer burden.
Public SafetyLean industryRef: Sec. 4(3)(a), Sec. 5(3)(a)The 10% of vapor and tobacco tax revenues dedicated to the foundational public health services account starting in 2028 is a relatively small portion of total revenue and is subject to annual appropriation, meaning its impact on public health infrastructure may be limited and vulnerable to budget cuts—reducing the likelihood that everyday Washingtonians will see meaningful improvements in cessation services or education.
FinancialIndustryRef: Sec. 1(2)(d), Sec. 5(3)(b), Sec. 6
Who Is Most Affected
Low-income tobacco/vape users face higher per-pack or per-ml costs due to the per-unit and ad valorem tax increases; while this may reduce consumption over time, the immediate burden falls disproportionately on those with limited disposable income, potentially worsening financial strain.
Small retailers (e.g., corner stores, gas stations) will face increased compliance costs and margin pressure due to higher tax rates and collection responsibilities, especially in neighborhoods where tobacco sales are a key revenue stream; some may reduce inventory or close, limiting access to legal products.
State and local public health agencies gain dedicated, ring-fenced funding for enforcement and education, improving capacity to run cessation programs and respond to youth vaping epidemics—though the $12M/year cap on dedicated funding limits scalability.
Patients in time-sensitive emergencies (e.g., stroke, cardiac arrest) benefit from improved emergency response infrastructure, particularly in rural counties where emergency care resources are scarce—potentially reducing mortality and disability.
Manufacturers of FDA-authorized reduced-risk products may gain a competitive advantage due to lower tax rates, potentially accelerating innovation in safer alternatives—but this benefit is limited to companies with the resources to navigate the MRTP application process.