Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Finance Committee
HB 2033
Brief Description: Concerning the taxation of nicotine products.
Sponsors: Representative Stonier.
Brief Summary of Bill
  • Expands the definitions of "moist snuff" and "tobacco products" to include products containing nicotine, which subjects the products to the other tobacco products tax.
Hearing Date: 3/20/25
Staff: Rachelle Harris (786-7137).
Background:

Other Tobacco Products Tax.

Taxes are imposed on the sale, handling, or distribution of all tobacco products at the following rates:

  • for cigars except little cigars, 95 percent of the taxable sales price of cigars, not to exceed 65 cents per cigar;
  • for little cigars, 15.125 cents per stick;
  • for moist snuff:
    • cans that weigh 1.2 oz or less, $2.526 per can; or
    • cans that weigh more than 1.2 oz, $2.105 per oz; and
  • for all other tobacco products, 95 percent of the taxable sales price.

 

The other tobacco products (OTP) tax is deposited into the state general fund.  The OTP tax is in addition to retail sales and use, business and occupation, and litter taxes that may apply.

 

The definition of "tobacco products" is made up of a list of forms of tobacco that are prepared for human consumption, and specifically excludes cigarettes.
Summary of Bill:

The definition of "tobacco products" is expanded to include products that contain nicotine, whether derived from tobacco or created synthetically.  The definition of "moist snuff" is expanded to include similar products containing nicotine.  Such products are thus subject to the OTP tax.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect on January 1, 2026.