Dear Clients of SKJ & Company, P.S.,
Effective 1/1/2026, the Tobacco Product Tax will apply to all products containing nicotine. The Tobacco Product Tax is a tax imposed when products defined as ‘tobacco products’ are manufactured within the state of Washington or imported into Washington from another state. The tax rate will be 95%. For products that were not previously subject to the Tobacco Product Tax, tax must be paid on inventory on hand as of 12/31/2025.
The reporting and payment deadline is January 25, 2026, which is the same as the due date for December 2025 WA Combined Excise Tax Return (Sales Tax).
Products that were not previously subject to the Tobacco Product Tax include:
- Synthetic nicotine pouches (example: Zyn)
- Disposable vapor products (example: Elf Bar)
- Vapor liquids that contain nicotine (example: refill juice)
Some of the above items were previously subject to a volume-based tax (per milliliter) under the Vapor Product Tax; however, these products have now been absorbed into the Tobacco Product Tax.
Clients who handle the above products are requested to determine, as of December 31, 2025, the inventory remaining at their place of business and the purchase price (not the retail selling price) of those items. Please complete this form and return it to our office together with your December sales information.
If you have any questions regarding this matter, please contact our office.
Thank you.
SKJ & Company, P.S.