H-182                _______________________________________________

                                                    HOUSE BILL NO. 167

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State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Lux, Holland, Leonard, Tilly, Sommers, Long, Rust, Allen, Winsley, Brough, Cole, Miller, Smitherman, Schoon, Betrozoff, B. Williams, Silver, Wang, Vander Stoep, Grimm,Van Luven, Sanders, Isaacson, Ballard, Walker, May and Doty

Read first time 1/23/85 and referred to Committee on Ways & Means.

AN ACT Relating to cigarette taxes; reenacting and amending RCW 82.24.260; adding a new section to chapter 82.24 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 82.24 RCW to read as follows:

          There is hereby levied and there shall be collected by the department of revenue from the persons mentioned in and in the manner provided by this chapter, an excise tax upon the sale, use, consumption, handling, possession, or distribution of cigarettes in an amount equal to the rate of four mills per cigarette.

          All moneys collected under this section shall be paid to the state treasurer and credited to the state general fund.@p0

        Sec. 2.  Section 7, chapter 157, Laws of 1972 ex. sess. as last amended by section 217, chapter 3, Laws of 1983 and by section 3, chapter 189, Laws of 1983 and RCW 82.24.260 are each reenacted and amended to read as follows:

          Any retailer who sells or otherwise disposes of any unstamped cigarettes other than (1) a federal instrumentality with respect to sales to authorized military personnel and (2) a federally recognized Indian tribal organization with respect to sales to enrolled members of the tribe shall collect from the buyer or transferee thereof the tax imposed on such buyer or transferee by ((RCW 82.24.020, 82.24.025,)) this chapter and RCW 28A.47.440 and remit the same to the department after deducting from the tax collected the compensation he would have been entitled to under the provisions of this chapter and RCW 28A.47.440 if he had affixed stamps to the unstamped cigarettes.  Such remittance shall be made at the same time and manner as remittances of the retail sales tax as required under chapters 82.08 and 82.32 RCW.  In the event the retailer fails to collect the tax from the buyer or transferee, or fails to remit the same, the retailer shall be personally liable therefor, and shall be subject to the administrative provisions of RCW 82.24.230 with respect to the collection thereof by the department.  The provisions of this section shall not relieve the buyer or possessor of unstamped cigarettes from personal liability for the tax imposed by ((RCW 82.24.020, 82.24.025,)) this chapter and RCW 28A.47.440.

          Nothing in this section shall relieve a wholesaler or a retailer from the requirements of affixing stamps pursuant to RCW 82.24.040 and 82.24.050.

NEW SECTION. Sec. 3.     Section 1 of this act shall take effect October 1, 1985, if the federal tax on cigarettes under 26 U.S.C. Sec. 5701(b)(1) on this date has reverted from eight dollars per thousand cigarettes to four dollars per thousand cigarettes; otherwise section 1 of this act shall be null and void in its entirety.