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Olympia -- Since enforcement of tobacco
tax laws was turned over to the Liquor Control Board in 1997, the Board has
assisted the State in recouping millions of dollars in lost revenues from
cigarette tax evasion.
The cigarette tax on a pack of cigarettes is $2.025 ($20.25 per carton) and is
divided among five separate funds:
| 1. |
Health Care |
$1.01 |
| 2. |
General Fund
|
23.0 cents |
| 3. |
Programs to Stop Youth
Violence |
10.5 cents |
| 4. |
Water quality
|
8.0 cents |
| 5. |
Education
|
60.0 cents |
The Liquor Control Board has seen some positive effects in the past two years
of enforcing the cigarette tax laws.
- Smoke shops have raised prices and imposed purchase limitations
attributing their actions to increased enforcement.
- Some licensed retailers have reported increased sales of cigarettes in
areas adjacent to both military and Native American reservations where
enforcement and awareness efforts have taken place.
- Smoke shops are now buying tax paid stamped and exempt stamped
cigarettes under the allotment process administered by the Department of
Revenue. (They previously did not participate in the program.)
- Several wholesalers are reporting sales of tax paid cigarettes to new
retailers who previously sold untaxed cigarettes.
- Nineteen (19) tribes have signed cigarette tax contacts with the State of
Washington allowing them to collect and retain taxes for essential
tribal services.
While these positive effects are difficult to measure in financial terms,
they do show a higher compliance rate.
The Board continues to raise awareness of the cigarette tax laws and how the
evasion of the cigarette tax impacts all citizens.
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