Cigarette allotment for Tribes

From the 2024 DOR Tax Exemption Study

82.24.260(1)(c) - Cigarette allotment for Tribes Description Certain quantities of untaxed cigarettes are allowed tax-free for consumption by tribal members on the reservations in Washington. The number of untaxed cigarettes is based on the number of enrolled tribal members living on the reservation and the national average per capita consumption rate. Note: The use of cigarette allotments has largely been replaced by contracts between Washington and many Indian tribes regarding the regulation and taxation of cigarettes in Indian country. An Indian tribal organization selling unstamped cigarettes to enrolled members of that same tribe is exempt from cigarette tax. Purpose The U.S. Supreme Court has ruled that states do not have the authority to impose a cigarette tax on enrolled tribal members living on their reservations. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.435 $1.435 $1.435 $1.435 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would not increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.