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Evergreen Ledger

ESSB 6129

In Committee

Senate

Cigarettes, nicotine/tax

Concerning the taxation of cigarettes and other nicotine products. (REVISED FOR ENGROSSED: Concerning the taxation of cigarettes, vapor products, and other products containing tobacco or nicotine.)

This status may be delayed. See Action History below for the latest updates.

How does a bill become law?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: February 18, 2026
Last Action: March 12, 2026
Status: S Rules 3
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AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesPeople-leaningCorporate & Wealthy Interests

This bill overhauls Washington’s taxation and regulation of nicotine products—including cigarettes, cigars, vapor products, and smokeless tobacco—by consolidating existing laws under a new chapter 82.26 RCW. It raises cigarette and nicotine product taxes, creates new taxes on flavored products, and redirects vapor product tax revenue to cancer research and public health programs. It also strengthens licensing, recordkeeping, and enforcement requirements, and opens the door for new tribal tax compacts.

  • Consolidates and expands the state’s nicotine product tax framework under chapter 82.26 RCW, replacing the prior vapor product tax chapter (82.25 RCW) and applying similar rules to all nicotine products—including vapor products, cigars, and smokeless tobacco—except cigarettes and FDA-approved cessation products.
  • Increases cigarette taxes by adding a new $0.09875-per-cigarette tax (effective 2028, inflation-adjusted every 4 years) and a new $0.025-per-flavored-cigarette tax.
  • Imposes a 10% additional tax on all flavored nicotine products (including flavored vapor products), on top of the base 90% tax on all nicotine products.
  • Requires distributors and retailers to obtain licenses, keep detailed invoices and records for five years, and comply with strict inspection and enforcement rules—including criminal penalties for unlicensed activity and seizure/forfeiture of contraband products.
  • Directs vapor product tax revenue to dedicated accounts: up to $10 million annually to the Andy Hill Cancer Research Endowment Fund and up to $20 million annually to the Foundational Public Health Services Account, with remaining funds to the state general fund.
  • Authorizes the governor to negotiate new tribal tax compacts requiring tribes to impose matching taxes on flavored cigarettes and flavored nicotine products.

Who is affected

  • Nicotine product distributors and retailers — Distributors and retailers of nicotine products (including vapor products) must obtain new licenses under chapter 82.26 RCW, maintain detailed sales and purchase records for five years, and comply with new invoice and inspection requirements.
  • Consumers of nicotine products — Consumers may face higher prices due to increased taxes on nicotine products, especially flavored products, and stricter enforcement may reduce product availability in some settings.
  • State health and research programs — The Andy Hill Cancer Research Endowment Fund and the newly created Foundational Public Health Services Account will receive dedicated funding from vapor product taxes, supporting cancer research and public health initiatives.
  • Federally recognized Indian tribes — Federally recognized tribes and tribal members conducting business within Indian country are excluded from certain tax and licensing requirements, and the bill authorizes new tribal tax compact negotiations.
  • Online and mail-order vapor product sellers — Delivery sellers (e.g., online or mail-order vendors) must implement strict age and identity verification, collect customer information, and follow new packaging and shipping rules to comply with licensing and enforcement provisions.
Effective: 2027-07-01Fiscal impact: The bill increases state revenue through higher cigarette and nicotine product taxes. Specifically, a new $0.09875-per-cigarette tax begins in 2028 and is adjusted for inflation every 4 years; a new $0.025-per-flavored-cigarette tax begins immediately. For vapor products, 50% of tax revenue up to $10 million goes to the Andy Hill Cancer Research Endowment Fund, and up to $20 million more goes to the Foundational Public Health Services Account annually (with inflation adjustments starting in 2029); remaining vapor product tax revenue goes to the state general fund.
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026 at 9:41 PM

Pro/Con Analysis

Potential Benefits (5)

  • Dedicated funding—up to $10M/year to the Andy Hill Cancer Research Endowment Fund and up to $20M/year to the Foundational Public Health Services Account—directly supports cancer research and public health infrastructure, with measurable downstream benefits for disease prevention and early intervention.

    HealthcarePeopleRef: Sec. 103, RCW 82.26.020(2)(a)-(b)

  • Class C felony penalties for unlicensed distribution or sale of nicotine products—and criminal penalties for knowingly violating delivery sale rules—strengthen enforcement against illicit markets and reduce youth access through unregulated channels.

    Public SafetyPeopleRef: Sec. 114, RCW 82.26.190(1)(b)

  • The 10% additional tax on flavored nicotine products—including flavored vapor products—targets products disproportionately used by youth, which is supported by CDC and Surgeon General data showing flavor as a key driver of youth initiation.

    HealthcarePeopleRef: Sec. 102, RCW 82.26.020(2)

  • Mandatory five-year retention of itemized invoices and real-time inspection authority for distributors and retailers improves traceability and enables rapid response to illegal or unverified product flows, especially online and mail-order sales.

    Public SafetyPeopleRef: Sec. 106–108, RCW 82.26.060–080

  • Strict delivery seller requirements—including third-party age/identity verification, credit card matching, and certification forms—reduce youth access through e-commerce, a major vector for underage vapor product procurement.

    Public SafetyLean peopleRef: Sec. 125, RCW 70.345.090(4)-(6)
Potential Concerns (5)

  • Higher prices for nicotine products—including a 10% additional tax on flavored products and a new $0.09875-per-cigarette tax—may reduce consumption, especially among price-sensitive groups like youth and low-income adults, potentially improving health outcomes.

    HealthcareLean industryRef: Sec. 102, RCW 82.26.020(1)

  • Mandatory licensing, recordkeeping, and inspection requirements—including criminal penalties for unlicensed activity and seizure/forfeiture of contraband—enhance enforcement capacity and reduce illicit market activity, improving public safety around product sourcing and age verification.

    Public SafetyIndustryRef: Sec. 103, RCW 82.26.020(2)(a)-(b)

  • Dedicated funding—up to $10M/year to the Andy Hill Cancer Research Endowment Fund and up to $20M/year to the Foundational Public Health Services Account—directly supports cancer research and public health infrastructure, with measurable downstream benefits for disease prevention and early intervention.

    HealthcarePeopleRef: Sec. 103, RCW 82.26.020(2)(a)-(b)

  • The $0.09875-per-cigarette tax (inflation-adjusted every 4 years) and $0.025-per-flavored-cigarette tax increase the cost burden on all cigarette buyers, disproportionately affecting low-income and addicted users who are less able to quit or absorb price increases.

    FinancialPeopleRef: Sec. 202, Sec. 203

  • Licensing requirements—including $650 distributor license fees and $115 per additional place of business— impose administrative and financial burdens on small retailers and micro-businesses, potentially reducing market entry and increasing compliance costs.

    Business & EmploymentLean peopleRef: Sec. 114, RCW 82.26.160(1)-(2)

Who Is Most Affected

Low-income nicotine consumersMixed Impact

Low-income and addicted users face higher out-of-pocket costs, especially for flavored products, and may experience reduced access to preferred products—though health benefits from reduced consumption may offset long-term financial strain.

Small nicotine product retailersMixed Impact

Small retailers face new licensing fees ($650 + $115 per location), recordkeeping burdens, and liability for sourcing from unlicensed distributors—though compliance may reduce regulatory risk and improve supply chain legitimacy.

E-commerce vapor product sellersNegative Impact

Online and mail-order vapor sellers must implement costly age/identity verification and certification systems; noncompliance carries class C felony penalties—making market entry more difficult for small operators but increasing barriers for illicit actors.

Cancer research and public health programsPositive Impact

Cancer patients, researchers, and public health programs benefit from dedicated funding—up to $30M/year combined—for research and services, with no offsetting cost to general fund services.

Federally recognized Indian tribesMixed Impact

Tribal nations may negotiate compacts requiring matching flavored product taxes; while this could increase tribal revenue, it also imposes new regulatory obligations and may reduce tribal sovereignty over taxation.