Senate Passes Tobacco Product Tax Increase

On Sunday the Senate passed the second of a two-bill revenue legislative package, an increase on tobacco products.

Substitute Senate Bill 6874, passed on 29-19. The bill would significantly increase the cost of tobacco products in Washington.  If enacted, the bill would increase the tax on cigarettes by $1, to a total of $3.025 per pack of 20 cigarettes. In addition, an added tax of  $1.825 per pack is included on promotions such “as buy one pack get one free” and “two packs for the price of one”.  Finally, cigarettes that are manufactured by nonparticipating members in the master settlement agreement are subject to an additional tax of 42 cents per pack.

The bill also creates the basic health plan stabilization account in which the tax revenue generated will go to  support enrollment in the basic health plan.

Senate Bill 6874 now goes to the House for further consideration.