Constitutional or Federal prohibition on tobacco products

From the 2024 DOR Tax Exemption Study

82.26.040 - Constitutional or Federal prohibition on tobacco products Description The tobacco products tax does not apply to any tobacco products (cigars, pipe tobacco, etc.), which the U.S. Constitution or federal law provides the state may not tax. The Buck Act (4 U.S.C. § 107) prohibits state taxation of tobacco products sold to branches of the U.S. armed forces at exchanges, commissaries, or ship’s stores or sales to authorized purchasers at these facilities. Also exempt are sales to and by the U.S. Veterans Administration. Washington has codified its acceptance of the provisions of the Buck Act. Purpose Federal legislation prohibits states from taxing tobacco products sold to authorized purchasers. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.243 $0.243 $0.243 $0.243 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would not increase revenues as that would violate the exemption U.S. Constitution or federal laws. Potential ($ 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 $0.000 $0.000 $0.000 $0.000 Assumptions No revenues are realized