Sales of vapor products by Indian retailers

From the 2024 DOR Tax Exemption Study

82.24.295(1) - Cigarettes covered by tribal contracts Description The cigarette tax does not apply to the sale, use, consumption, handling, possession, or distribution of cigarettes by an Indian retailer if its tribe has a cigarette tax contract with the state of Washington. Purpose To provide consistency in the regulation and taxation of cigarettes in Indian country. Also, it promotes economic development, provides needed revenues for tribal governments, and enhances enforcement of the state's cigarette tax, ultimately saving the state money and reducing conflict. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $66.600 $66.600 $66.600 $66.600 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would not increase revenues, as that would violate the exemption contractual agreement. Potential ($ 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 The state will not impose its vapor products tax and sales and use taxes on these products, as the tribes already impose equivalent taxes under the contracts. Data Sources D