Washington Information
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Tobacco Taxes
Washington's excise tax per pack of cigarettes: $1.425 Washington's excise tax collection for the fiscal year ending June 2002: $307,701,000
Sales tax on tobacco products: 6.50%
Federal excise tax per pack of cigarettes: $0.39 Total federal excise tax collections in fiscal year 2002: $7,512,700,000
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Who Profits from Cigarette Sales? 
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Comparing Excise Taxes on Cigarettes, Beer and Wine
Number of six-packs of beer that must be sold in Washington to produce the same state excise tax revenue generated by one carton of cigarettes: 97.4
Number of bottles of wine that must be sold in Washington to produce the same state excise tax revenue generated by one carton of cigarettes: 92.2
Washington Smokers' Contributions to the State Economy - FY2001 - 2003
Washington smokers comprise only 22.5%1 of the adult population in the state. But here is what they already pay, simply because they choose to buy a legal product:
Smokers Pay Excise Taxes2 |
$ |
545,587,759 |
Smokers Pay Sales Taxes2 |
$ |
144,011,991 |
Smokers Pay Tobacco Settlement Payments3 |
$ |
273,766,449 |
|
$ |
963,366,199 |
Smokers' Economic/Tax Profile 2001
Washington smokers' median household income |
$ |
37,373 |
Washington nonsmokers' median household income |
$ |
48,404 |
- Working Families Pay More1
31% of Washington smokers had a household income of LESS THAN $25,000. Clearly, those who can afford it least already pay a disproportionate percentage of their hard-earned income in smoker payments.
- Smoker Excise tax/sales tax/tobacco settlement payments liability in 20024
Total average paid per Washington smoker in excise and sales taxes |
$ |
383 |
Cost per Washington smoker for settlement payments to Washington |
$ |
149 |
Total annual payment to Washington per smoker |
$ |
532 |
Washington Smoker Facts5
- Total FY2002 smoker payments to Washington were:
- Three times as large as FY2002 state excise taxes on alcohol ($174 million).
- More than 50% larger than FY2002 public utility tax revenues ($332.4 million).
- Over five times as large as the lottery revenues committed to state education in 2002 ($102.4 million).
- Enough to pay all estimated FY2002 expenditures for: Juvenile Rehabilitation ($119.5 million) and Alcohol and Substance Abuse ($113.8 million), with $291 million to spare.
- One year of Washington smoker payments could fund the estimated expenditures for the 2001-2003 biennium for the Community, Trade, and Economic Development program ($490.5 million). It could fund all Capitol Improvements for the Community and Technical College System ($193 million), Washington State University ($111.9 million) AND the University of Washington ($148.7 million). It could fund the Washington State Patrol ($331.4 million), the Dept. of Veteran Affairs ($72.6 million) AND State Schools for the Blind and Deaf ($25.6 million), with $95 million left over. Enough is enough!
TOTAL SMOKER CIGARETTE PAYMENTS TO WASHINGTON FY2002 |
Per year: |
$ |
524,528,368 |
Per day: |
$ |
1,436,080 |
Per hour: |
$ |
59,837 |
Per minute: |
$ |
997 |
Per second: |
$ |
17 |
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CIGARETTES DON'T PAY TAXES - WASHINGTON SMOKERS DO!!
1 Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2001 2 Orzechowski & Walker, Arlington, Virginia; from state revenue department 3 PriceWaterhouseCooper 4 U.S. Census Bureau, 2000 state population and Centers for Disease Control's Behavioral Risk Surveillance System, 2001 5 Tax and Budget Comparisons are from the U.S. Census Bureau and the Washington Office of Financial Managemement, Governor Gary Locke Proposed 2003-2005 Budget: "Budget Summaries, Table 3" (http://www.ofm.wa.gov/budget03/summary/default.htm) and "Agency Detail Budgets" (http://www.ofm.wa.gov/budget03/detail/default.htm.) Expenditures are for state operations only except where noted. Lottery data is from http://www.walottery.com/wherelotterygoes.asp.
Master Settlement Agreement Payments To Date
$486,050,912 has been paid to Washington since the Master Settlement Agreement was signed on November 23, 1998.
A summary of Washington state law is provided below (for specific questions regarding state law, contact your legal advisor.)
Minimum Age |
Customers must be 18 years or older to purchase tobacco products.
Where there may be a question of a person's right to purchase or obtain tobacco products by reason of age, the seller shall require the purchaser to present identification. |
Restricted Products |
Any product containing tobacco. |
Acceptable Forms of Identification |
Liquor control authority card of identification of a state or province of Canada; driver's license, instruction permit, or identification card of a state or province of Canada; "identicard" issued by the Washington state department of licensing; United States military identification; passport; or Merchant Marine identification card issued by the United States Coast Guard. |
Fine/Penalty Schedule for Selling to Minors |
Penalties for violations may be imposed against the licensed retailer and/or against the employee who commits the offense. The Liquor Control Board has authority to suspend or revoke a retail license for a violation. Alternatively, the board has authority to impose a fine of up to $100 for the first offense. For additional offenses within any two-year period, the following fines apply: up to $300 for the second offense; up to $1,000 and license suspension for 6 months for the third offense; up to $1,500 and license suspension for 12 months for the fourth offense; revocation of license with no possibility of reinstatement for 5 years for the fifth offense. Employees are subject to a penalty of $50 for the first offense, and $100 for subsequent offenses. State law authorizes the Liquor Control Board to develop and offer a class for retail clerks that an employee could attend for a first violation in lieu of a fine. The board may exceed the penalties set forth, based on aggravating circumstances. |
Affirmative Defense |
It is a defense that the seller reasonably relied on proof of age. Suspension or revocation is subject to waiver if the retailer demonstrates that he or she acted in good faith to prevent violations. |
Minor Possession |
A person under the age of 18 who purchases, possesses or obtains, or attempts to purchase, possess or obtain, cigarettes or tobacco products is subject to a fine of up to $50 and/or up to four hours of community service. The court may also require participation in a smoking cessation program. |
Sign Requirement
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A person with a retail license is required to post a sign (provided free of charge by the Liquor Control Board) that is clearly visible to anyone purchasing tobacco products. The sign must state:
THE SALE OF TOBACCO PRODUCTS TO PERSONS UNDER AGE 18 IS STRICTLY PROHIBITED BY STATE LAW. IF YOU ARE UNDER 18, YOU COULD BE PENALIZED FOR PURCHASING A TOBACCO PRODUCT; PHOTO ID REQUIRED. Failure to post the sign subjects the retailer to a fine of up to $100 for the first offense within any two-year period. For additional offenses within any two-year period, the following fines apply: up to $300 for the second offense; up to $1,000 and license suspension for 6 months for the third offense; up to $1,500 and license suspension for 12 months for the fourth offense; and revocation of license with no possibility of reinstatement for 5 years for the fifth offense. |
Compliance Checks |
As a condition of receiving federal substance abuse block grant funds, federal law requires the State of Washington to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. The Liquor Control Board coordinates the inspections. |
DISCLAIMER: This information summary is provided as a service of the Coalition, but is not intended to provide legal advice or analysis. These summaries are not intended to be complete representations of state law, which may contain additional rules and restrictions relating to tobacco products not mentioned in this summary, as well as retailing prohibitions related to matters including, but not limited to, state required training, minimum pack size, the sale of loose cigarettes and other restrictions. Retailers should not rely on these summaries as complete or accurate descriptions of applicable federal, state or local law. Users with questions about the law should seek the advice of counsel. Each state law is unique and possibly represents multiple legislative or regulatory acts. Local laws may differ. Check with local authorities for variations from state law. These summaries are not intended to be complete representations of state law. |
The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.
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