Cigarette stamping

From the 2024 DOR Tax Exemption Study

Det. No. 19-0283, 40 WTD 265 (December 30, 2021) 267 unstamped cigarettes is considered “prima facie evidence of intent to violate the provisions of [Chapter 82.24 RCW].” RCW 82.24.120(3). Chapter 82.24 RCW imposes a remedial penalty upon any person subject to the chapter who fails to affix the required stamp on a container, or fails to pay any tax due. In addition to any tax due, RCW 82.24.120(1) requires the Department to impose penalties and interest as follows: [A] remedial penalty equal to the greater of ten dollars per package of unstamped cigarettes or ten dollars per twenty roll-your-own cigarettes, or two hundred fifty dollars, plus interest on the amount of the tax at the rate as computed under RCW 82.32.050(2) from the date the tax became due until the date of payment, . . . . RCW 82.24.120(1). See also WAC 458-20-186(705). Whenever the Department issues an assessment for unpaid taxes, it must also include interest. RCW 82.32.050. Here, Taxpayer does not contest that it possessed 28 packs of cigarettes that were missing the tax stamp required under RCW 82.24.030. Taxpayer has presented no evidence to suggest that it is exempt from Washington’s cigarette tax; therefore, w