H-0785.1  _______________________________________________

 

                          HOUSE BILL 1914

          _______________________________________________

 

State of Washington      55th Legislature     1997 Regular Session

 

By Representatives Grant, Pennington, Scott, Thompson, Mielke, Cairnes, Sherstad, Ballasiotes, Buck, Schoesler, Robertson, Hickel, Kessler, Romero, Linville, Hatfield, Sheldon, Benson, Wensman, Mitchell, Dyer, Alexander, Blalock, Morris, Hankins and Backlund

 

Read first time 02/13/97.  Referred to Committee on Finance.

Using taxation of cigars for health services.


    AN ACT Relating to taxation of cigars; amending RCW 82.26.010; and adding a new section to chapter 82.26 RCW.

 

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

 

    NEW SECTION.  Sec. 1.  A new section is added to chapter 82.26 RCW to read as follows:

    (1) There is levied and there shall be collected a tax upon the sale, use, consumption, handling, or distribution of all cigars in this state at the rate of twenty-five percent of the wholesale sales price of the cigars.

    (2) The moneys collected under this section shall be deposited in the health services account created under RCW 43.72.900.

 

    Sec. 2.  RCW 82.26.010 and 1995 c 278 s 16 are each amended to read as follows:

    As used in this chapter:

    (1) "Tobacco products" means ((cigars, cheroots, stogies,)) periques, granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco, snuff, snuff flour, cavendish, plug and twist tobacco, fine-cut and other chewing tobaccos, shorts, refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and smoking, but shall not include cigarettes as defined in RCW 82.24.010 and cigars;

    (2) "Manufacturer" means a person who manufactures and sells tobacco products;

    (3) "Distributor" means (a) any person engaged in the business of selling tobacco products in this state who brings, or causes to be brought, into this state from without the state any tobacco products for sale, (b) any person who makes, manufactures, or fabricates tobacco products in this state for sale in this state, (c) any person engaged in the business of selling tobacco products without this state who ships or transports tobacco products to retailers in this state, to be sold by those retailers;

    (4) "Subjobber" means any person, other than a manufacturer or distributor, who buys tobacco products from a distributor and sells them to persons other than the ultimate consumers;

    (5) "Retailer" means any person engaged in the business of selling tobacco products to ultimate consumers;

    (6) "Sale" means any transfer, exchange, or barter, in any manner or by any means whatsoever, for a consideration, and includes and means all sales made by any person.  It includes a gift by a person engaged in the business of selling tobacco products, for advertising, as a means of evading the provisions of this chapter, or for any other purposes whatsoever;

    (7) "Wholesale sales price" means the established price for which a manufacturer sells a tobacco product to a distributor, exclusive of any discount or other reduction;

    (8) "Business" means any trade, occupation, activity, or enterprise engaged in for the purpose of selling or distributing tobacco products in this state;

    (9) "Place of business" means any place where tobacco products are sold or where tobacco products are manufactured, stored, or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane, train, or vending machine;

    (10) "Retail outlet" means each place of business from which tobacco products are sold to consumers;

    (11) "Department" means the state department of revenue; and

    (12) "Cigar" means any roll for smoking made wholly or in part of tobacco, irrespective of size or shape and irrespective of the tobacco being flavored, adulterated, or mixed with any other ingredient, where such roll has a wrapper or cover made wholly or in the greater part made of natural leaf tobacco in its natural state.  "Cigar" includes stogies and cheroots.

 


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