2675 AMS BRAU S6038.1
HB 2675 - S AMD TO WM COMM AMD (S-5865.1/26) 948
By Senator Braun
ADOPTED 03/09/2026
On page 4, after line 2, insert the following:
Sec. 5. "RCW 82.26.020 and 2019 c 445 s 404 are each amended to read as follows:
(1) There is levied and collected a tax upon the sale, handling, or distribution of all tobacco products in this state at the following rate:
(a) For cigars except little cigars, ((ninety-five))95 percent of the taxable sales price of cigars, not to exceed ((sixty-five))65 cents per cigar;
(b) For all tobacco products except those covered under separate provisions of this subsection, ((ninety-five))95 percent of the taxable sales price. The tax imposed on a product under this subsection must be reduced by ((fifty))50 percent if that same product is issued a modified risk tobacco product order by the secretary of the United States department of health and human services pursuant to Title 21 U.S.C. Sec. 387k(g)(1), or by ((twenty-five))25 percent if that same product is issued a modified risk tobacco product order by the secretary of the United States department of health and human services pursuant to Title 21 U.S.C. Sec. 387k(g)(2). The tax reduction applies during the period the modified risk tobacco product order is in effect;
(c) For moist snuff, as established in this subsection (1)(c) and computed on the net weight listed by the manufacturer:
(i) On each single unit consumer-sized can or package whose net weight is ((one and two-tenths))1.2 ounces or less, a rate per single unit that is equal to the greater of 2.526 dollars or ((eighty-three and one-half))83.5 percent of the cigarette tax under chapter 82.24 RCW multiplied by ((twenty))20; or
(ii) On each single unit consumer-sized can or package whose net weight is more than ((one and two-tenths))1.2 ounces, a proportionate tax at the rate established in (c)(i) of this subsection (1) on each ounce or fractional part of an ounce; and
(d) For little cigars, an amount per cigar equal to the cigarette tax under chapter 82.24 RCW.
(2) Taxes under this section must be imposed at the time the distributor (a) brings, or causes to be brought, into this state from without the state tobacco products for sale, (b) makes, manufactures, fabricates, or stores tobacco products in this state for sale in this state, (c) ships or transports tobacco products to retailers in this state, to be sold by those retailers, or (d) handles for sale any tobacco products that are within this state but upon which tax has not been imposed.
(((3) The moneys collected under this section must be deposited into the state general fund.))
NEW SECTION.  Sec. 6. A new section is added to chapter 82.26 RCW to read as follows:
(1) Except as provided in subsection (2) of this section, moneys collected under this chapter must be deposited into the state general fund.
(2)(a) The moneys collected under this chapter on vapor products must be deposited as follows:
(i) 50 percent into the Andy Hill cancer research endowment fund match transfer account created in RCW 43.348.080 and 50 percent into the foundational public health services account created in RCW 82.25.015 until such time as distributions to the Andy Hill cancer research endowment fund match transfer account reach $10,000,000 each fiscal year;
(ii) Any moneys collected in excess of (a)(i) of this subsection (2) must be deposited into the foundational public health services account created in RCW 82.25.015 until such time as the total amount of distributions to the account reach $20,000,000 each fiscal year;
(iii) Any moneys collected from the tax on vapor products not otherwise distributed under (a)(i) or (ii) of this subsection (2) each fiscal year must be deposited into the state general fund.
(b) Beginning January 1, 2029, and each year thereafter, the department shall adjust the distribution amounts in (a)(i) and (ii) of this subsection (2) by multiplying the current amount by one plus the percentage by which the most current consumer price index available on October 1st of the current year exceeds the consumer price index for the prior 12-month period. If an adjustment under this subsection (2) would reduce the applicable amounts, the department may not adjust the applicable amounts for use in the following year. The department must notify the state treasurer of the adjusted applicable amounts by December 31st. The adjusted distribution amounts calculated under this subsection (2)(b) for the distribution amount described in (a)(i) and (ii) of this subsection (2) apply to distributions made in the following fiscal year.
(3) For purposes of this section, "consumer price index" means the consumer price index for all urban consumers, all items, for the Seattle area as calculated by the United States bureau of labor statistics or its successor agency."
Renumber the remaining sections consecutively and correct any internal references accordingly.
On page 28, line 11, after "46.68.175" insert "and 82.26.020"
On page 28, line 13, after "RCW;" insert "adding a new section to chapter 82.26 RCW;"
EFFECT: Distributes revenue from the tax collected on vapor products as follows: (1) 50 percent to the Andy Hill Cancer Research Endowment Fund Match Transfer Account (Andy Hill Account) and 50 percent into the Foundational Public Health Services Account (FPHS Account) until distributions to the Andy Hill Account reach $10 million each fiscal year; (2) any additional revenue collected from the tax on vapor products must be deposited to the FPHS Account until the total amount of distributions to the account reach $20 million each fiscal year; and (3) the remainder of revenue collected from the tax on vapor products each fiscal year must be deposited into the State General Fund. Requires distributions to the Andy Hill Account and FPHS Account be adjusted for inflation annually, beginning January 1, 2029.
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