WAC 186

(Industry Guides)
Document Reference Description Date of Issue Status
N/A

Indian Tax Guide

Revised Codes of Washington (RCW)
Document Reference Description Date of Issue Status
43.06.450

Cigarette tax contracts -- Intent -- Finding -- Limitations.

43.06.455

Cigarette tax contracts -- Requirements -- Use of revenue -- Enforcement -- Definitions.

46.06.460

Cigarette tax contracts -- Eligible tribes -- Tax rate.

70.155.050

Sampling prohibited -- Penalty.

70.155.105

Delivery sale of cigarettes -- Requirements, unlawful practices -- Penalties -- Enforcement.

70.158

Tobacco product manufacturers.

82.04.250

Tax on Retailers

82.24

Tax on Cigarettes

82.24.010

Definitions.

82.24.020

Tax imposed -- Additional taxes for specific purposes -- Absorption of tax -- Possession defined.

82.24.027

Additional tax imposed -- Rate -- Where deposited.

82.24.028

Additional tax imposed -- Rate -- Health services account.

82.24.030

Stamps.

82.24.040

Duty of wholesaler.

82.24.100

Forgery or counterfeiting of stamps -- Penalty.

82.24.110(1)(m)

Other offenses -- Penalties.

82.24.110(2)

Other offenses -- Penalties.

82.24.120

Violations - Penalties and interest.

82.24.130

Seizure and forfeiture.

82.24.250

Transportation of unstamped cigarettes -- Invoices and delivery tickets required -- Stop and inspect.

82.24.260

Selling or disposal of unstamped cigarettes - Person to pay and remit tax or affix stamps - Liability.

82.24.570

Counterfeit cigarette offenses -- Penalties.

82.32.050(2)

Deficient tax or penalty payments -- Notice -- Interest -- Limitations.

Washington Administrative Codes (WAC)
Document Reference Description Date of Issue Status
458-20-186

Tax on cigarettes.Effective 6/3/94

458-20-186

WAC 458-20-186explains the tax liabilities of persons engaged in business as retailers or distributors of cigarettes. The Department amended this rule to recognize HB 2542 (chapter 226, Laws of 2008); which amends the quantity which is unlawful to possess or transport from six thousand unstamped cigarettes to ten thousand unstamped cigarettes, and SHB 1435 (chapter 154, Laws of 2009); which provides for the Washington State Liquor and Cannabis Board authority to issue and enforce the licensing requirements under RCW 82.24.510 and 82.24.550.

458-20-186

Tax on Cigarettes The Department is amending Rules 185 and 186 to provide updates based on legislation addressing changes in tax rates for cigarette and tobacco products, roll-your-own cigarettes, wholesale and retail vendor licensing requirements. Guidance on the manner in which cigarette stamps must be affixed is also amended. The refund procedures have been clarified. Rule 186 has been formatted in the same way as Rule 185.

458-20-186

Tax on cigarettes.

458-20-186

Tax on cigarettes. Effective 03/10/07.

Special Notices (SN)
Document Reference Description Date of Issue Status
N/A

Tobacco Tax Rate Increase & Definition Changes

N/A

Cigarette Tax Rate Increase

N/A

Moist Snuff Tax Rate and Classification Changes

N/A

Cigarette and Tobacco Products Tax Changes

N/A

Cigarettes Sold in Washington Required to be Certified as Reduced Ignition Propensity Revised

N/A

Cigarettes Sold in Washington Required to be Reduced Ignition Propensity Certified

N/A

Cigarette Tax Rate Increase

N/A

Commercial Cigarette-Making Machines Operated at Retail Establishments and the Taxation of Roll-Your-Own Cigarettes

Washington Tax Decisions (WTD)
Document Reference Description Date of Issue Status
10 WTD 426

RCW 82.24.120 -- CIGARETTE STAMPS -- PENALTY.Penalty for failure to affix cigarette stamps as required by RCW 82. 24.120sustained on Oregon stamped cigarettes found in a Washington business.Some of the packs were onracks for sale and the taxpayer provided no evidence, other than personal testimony, that the majority of the cigarettes were stored for the purposes of being returned to the suppliers.

17 WTD 260

CIGARETTE TAX -- EXEMPTION -- INTERSTATE SALE --DOCUMENTATION.Sales of unstamped cigarettes to an out-of-state customer are not exempt from cigarette tax where testimony indicates that the unstamped cigarettes were delivered to a Washington address for local pick-up by the customer.

19 WTD 50

CIGARETTE TAX - UNSTAMPED CIGARETTES - PENALTY - GOOD REASON TO ABATE.A taxpayer must show good cause - for the Department to abate the penalty for possession of unstamped packages of cigarettes.A taxpayer has not shown good cause by keeping packages of unstamped cigarettes, and packages bearing other states - stamps, in a box out of open view and making no effort to obtain Washington tax stamps or to dispose of the cigarettes.

26 WTD 105

RCW 82.24.020, RCW 82.24.080, RCW 82.12.020:CIGARETTE TAX - USE TAX - FIRST POSSESSION - USE.Where a taxpayer purchased cigarettes from an out-of-state vendor and was the first possessor of the cigarettes in Washington, he is liable for the cigarette tax.Where a taxpayer used cigarettes in Washington and did not pay retail sales tax on the purchase of the cigarettes, he is liable for use tax.

26 WTD 105

RCW 82.24.120, RCW 82.32.090: CIGARETTE TAX - USE TAX --PENALTIES - WAIVER “LACK OF KNOWLEDGE" - PAYMENT OF TAX AND INTEREST. As an administrative agency, the Department may waive or cancel taxes, penalties and interest, but only under specific circumstances prescribed by law.Lack of knowledge of a tax liability is not grounds for waiver of that liability. The Department can waive the cigarette tax penalty for good cause, but the taxpayer must pay all taxes due and interest thereon.Where the taxpayer has not paid the taxes and interest, the Department cannot waive the penalty.

27 WTD 83

Rule 186; RCW 82.24.040:CIGARETTE TAX - OUT OF STATE SALES.The exemption for sales to out-of-state distributors applies only where the person making the sale furnishes a surety bond in a sum equal to twice the amount of the tax that would be affixed to the cigarettes that are set aside for the conduct of such business without affixing cigarette stamps.Where a taxpayer did not furnish the surety bond required under Rule 186, the exemption for out of state sales did not apply.

27 WTD 83

Rule 186; RCW 82.24.040:CIGARETTE TAX - SALES TO WHOLESALERS.The Washington cigarette tax is imposed on the first sale, use, consumption, handling, possession or distribution of cigarettes within this state.The tax is normally collected through the purchase of stamps.Only a licensed wholesaler is authorized to purchase and affix tax stamps to packs of cigarettes.Rule 186, Part 204(d)(i) allows a licensed wholesaler to sell or transfer unstamped cigarettes to another licensed wholesalers, but only if the sale or transfer takes place within the first 72 hours of handling or possessing the cig

27 WTD 83

Rule 186; RCW 82.24.040:CIGARETTE TAX - EXEMPTION - SALES TO INDIAN OR TRIBAL SELLERS. The cigarette tax does not apply to cigarettes taxed by an Indian tribe in accordance with a cigarette contract under RCW 43.06.450 through 43.06.460. A Taxpayer must provide records to show that it purchased Tribal cigarette stamps or otherwise paid Tribal cigarette tax on any of the cigarettes sold to the Tribe or tribal seller in order to qualify for the exemption.

33 WTD 472

RULE 186(601); RCW 82.24.090: TAXPAYER’S DUTY TO KEEP AND PRESERVE ACCURATE RECORDS CONCERNING TRANSACTIONS INVOLVING CIGARETTES. Contrary to Taxpayer’s assertion, the burden is on retailers and wholesalers of cigarettes in Washington State to keep and preserve accurate records, and have them available for the Department to inspect. Taxpayer admits they has no records concerning their purchase and sale of cigarettes, and therefore has failed to meet the burden.

33 WTD 472

RULE 186(605); RCW 82.24.120(2): GOOD CAUSE TO WAIVE OR CANCEL THE CIGARETTE PER PACK PENALTY (I.E., POSSESSION PENALTY). Taxpayer merely alleges that since divorcing their ex-spouse they are financially unable to pay the possession penalty against them because they live on a minimum wage and that paying it would force them to lose their personal residence. However, such reasons do not equate with good cause for the Department to cancel the possession penalty.

33 WTD 472

RULE 186(101), (102); RCW 82.24.020; RCW 82.24.080: CIGARETTE TAX. Any person in possession of unstamped cigarettes in Washington State, unless specifically exempted, is liable for cigarette tax on those cigarettes. Prior to the federal government seizing unstamped cigarettes from Taxpayer, Taxpayer stored them in her storage facility located in Washington, and was therefore in possession of them. Therefore, Taxpayer is liable for cigarette tax on such cigarettes.

33 WTD 578

RULE 186; RCW 82.24.020: CIGARETTE TAX - IMPOSITION. The Cigarette tax is levied and collected upon the sale, use, consumption, handling, possession, or distribution of all cigarettes