CIGARETTE/TOBACCO PRODUCTS TAXES

82.24.260(1,c) INDIAN TRIBAL ORGANIZATIONS

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 of cigarettes.

Purpose: The U.S. Supreme Court has ruled that states do not have the authority to impose a cigarette tax upon enrolled tribal members living upon their own reservations.

Category/Year Enacted: Government; 1970.

Primary Beneficiaries: Approximately 91,000 tribal members on the 26 reservations in Washington.

Conflict With Other Programs: None evident.

Tax Savings ($000):* FY 2000 FY 2001 FY 2002 FY 2003
State taxes 4,945 5,235 5,543 5,869
Local taxes 251 265 281 297

*Estimates include the state cigarette tax, as well as state/local sales tax and state B&O tax. The figures reflect only the allotment for enrolled tribal members.

If the exemption were repealed, would the estimated revenue be realized? No.

 

82.24.290 U.S. MILITARY

82.24.260(1,b)

Description: The cigarette tax does not apply to sales by the United States Army, Navy, Air Force, Marine Corps, or Coast Guard exchanges, commissaries and ships' stores or to the U.S. Veterans Administration.

Purpose: Federal legislation, the Buck Act (4.USCS.107), prohibits states from imposing a cigarette tax upon members of the military and their dependents.

Category/Year Enacted: Government; 1940.

Primary Beneficiaries: Approximately 285,000 active and retired military personnel and dependents.

Conflict With Other Programs: There are no comparable exemptions for other federal personnel or employees of state and local governments.

Tax Savings ($000):* FY 2000 FY 2001 FY 2002 FY 2003
State taxes 24,158 24,642 25,134 25,637
Local taxes 1,223 1,247 1,272 1,297

*Estimates include the state cigarette tax, as well as state/local sales tax and state B&O tax.

If the exemption were repealed, would the estimated revenue be realized? No; not as long as the Buck Act continues to apply.

 

82.26.040 U.S. MILITARY

Description: The tobacco products tax does not apply to sales of tobacco products (cigars, pipe tobacco, etc.) which the state may not tax under federal law. This has been interpreted under the Buck Act to prohibit taxing tobacco products sold to the United States Army, Navy, Air Force, Marine Corps, or Coast Guard exchanges, commissaries and ships' stores or to the U.S. Veterans Administration for sale to military personnel/dependents.

Purpose: Federal legislation, the Buck Act (4.USCS.107), prohibits states from imposing tobacco taxes upon members of the military and their dependents.

Category/Year Enacted: Government; 1940.

Primary Beneficiaries: Approximately 285,000 active and retired military personnel and dependents.

Conflict With Other Programs: There are no comparable exemptions for other federal personnel or employees of state and local governments.

Tax Savings ($000):* FY 2000 FY 2001 FY 2002 FY 2003
State taxes 1,411 1,413 1,436 1,459
Local taxes 62 62 63 64

*Estimates include the state tobacco products tax, as well as state/local sales tax and state B&O tax. The figures reflect only legitimate tax-free sales to bona fide military personnel.

If the exemption were repealed, would the estimated revenue be realized? No.