New Washington Bill Would Create Highest Cigar Tax in the Nation

[El Presidente]

 Under S.B. 6129, that same cigar would likely have a taxable sales price of $4.75, which would get taxed at 90 percent, increasing the excise tax paid from 65 cents under the status quo to $4.28. That same cigar would go from a shelf price of $10.15 to $13.78 before sales tax. The more expensive the cigar, the more effect the change would have. For example, a cigar with a $24 MSRP is likely sold for around $24.65 before sales tax, but that would jump to $34.80 if the bill passes.

 

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[JohnS]

Washington's Proposed Cigar Tax Could Reshape Industry

 

By Menachem Kossowsky - Published at: 02-11-2026

 

Cigar enthusiasts and tobacco retailers across Washington state are facing what could become the most dramatic shift in pricing they've ever seen. Legislators in Olympia are weighing several bills this session that would fundamentally alter the taxation landscape for cigars and other tobacco products, with one proposal potentially establishing the steepest cigar tax in the entire country.

The legislation causing the most concern is Senate Bill 6129, introduced by Senator June Robinson, a Democrat from Everett, along with five Democratic co-sponsors. This bill proposes revising the tax structure for nearly all tobacco and vaping products to a new rate of 90 percent of the taxable sales price, which would most likely be calculated based on the wholesale price.

To understand the potential impact, it helps to look at how Washington currently handles cigar taxation. Right now, the state charges a tax of 95 percent of the wholesale price, but there's an important catch - the tax is capped at no more than 65 cents per cigar. This ceiling has been the saving grace for premium cigar smokers. Under the current system, any cigar with a manufacturer's suggested retail price of at least $1.40 hits that 65-cent maximum, and the tax stays there regardless of how expensive the cigar gets.

The math works out favorably for consumers under the existing rules. Take a cigar with a $9.50 MSRP as an example. Currently, that cigar would sell for approximately $10.15 before sales tax is added - just 65 cents more than the base price. It's a predictable cost that consumers have grown accustomed to over the years.

But Senate Bill 6129 would eliminate that cap entirely and dramatically change the equation. Under the proposed system, that same $9.50 cigar would have a taxable sales price of around $4.75, which would then be taxed at the new 90 percent rate. Instead of paying 65 cents in excise tax, consumers would be paying $4.28. The shelf price would jump from $10.15 to $13.78 before sales tax even enters the picture.

The impact becomes even more pronounced with higher-end cigars. Consider a premium cigar with a $24 MSRP. Under current law, it would retail for roughly $24.65 before sales tax - again, just that 65-cent increase. If Senate Bill 6129 passes, that same cigar would cost $34.80 before sales tax. That's a price increase of more than $10 for a single cigar, representing a jump of over 40 percent.

The bill doesn't stop there. There's an additional provision that would tack on another 10 percent tax for any flavored products. This means flavored cigars would face a combined tax rate of 100 percent of their taxable sales price - effectively doubling the base wholesale cost before any other pricing considerations come into play.

If this legislation becomes law, Washington would claim an unwanted distinction: the highest cigar tax rate in the United States. That title currently belongs to Utah, which taxes cigars at 86 percent of the wholesale price. Washington's proposed 90 percent rate would surpass that mark, and the 100 percent rate for flavored products would be in a category of its own.

For perspective on how varied tobacco taxation can be across the country, it's worth noting that several jurisdictions take a completely different approach. Florida, New Hampshire, Pennsylvania, and Washington, D.C. have chosen not to impose any tobacco taxes on cigars at all, creating a stark contrast with what Washington state is considering.

While Senate Bill 6129 represents the most significant threat to cigar consumers and the retailers who serve them, it's not the only legislation on the table this session. House Bill 2382 offers a much more modest proposal, suggesting an increase to the cigar tax cap from the current 65 cents to 85 cents. Compared to the sweeping changes in Senate Bill 6129, this 20-cent increase seems almost negligible, though it would still represent a roughly 30 percent increase in the cap.

Beyond these specific bills, lawmakers have reintroduced a variety of other proposals from previous sessions. Some of these measures would adjust tobacco tax rates in different ways, while others would ban flavored products entirely. The legislative landscape is crowded with options, and the final outcome could involve elements from multiple bills.

The timing of these developments is moving quickly. The Senate Committee on Ways & Means has scheduled a hearing on Senate Bill 6129 for January 22 at 4:00 p.m. This hearing will provide the first major public forum for discussion of the bill and could set the tone for how seriously the legislature intends to pursue such a dramatic tax increase.

For cigar retailers operating in Washington, the passage of Senate Bill 6129 would require a complete overhaul of their pricing structures and could potentially drive some customers to seek alternatives. Online purchases from out-of-state vendors, trips across state lines to neighboring jurisdictions with lower tax rates, or simply cutting back on cigar purchases altogether could all become more common if prices rise as dramatically as the bill proposes.

The economic implications extend beyond just the sticker shock for consumers. Specialty tobacco shops that have built their businesses around serving cigar enthusiasts could see significant drops in sales volume if customers decide the new prices are simply too high. Some smokers might stick with their favorite brands and absorb the cost, but others will inevitably make different choices when faced with paying 40 percent or more for the same product.

The question of whether this legislation will gain enough support to pass remains open. With Democratic sponsors backing Senate Bill 6129 and Democrats controlling both chambers of the Washington legislature, the bill certainly has a path forward. However, the dramatic nature of the proposed increase and the potential economic impact on small businesses could give some lawmakers pause.

As the hearing approaches, stakeholders on all sides are preparing to make their voices heard. Tobacco retailers, cigar manufacturers, public health advocates, and individual consumers all have strong interests in how this legislation develops. The outcome of this debate will determine whether Washington state takes the crown for the nation's highest cigar tax or whether lawmakers will opt for a more measured approach to tobacco taxation.

Source: https://www.gentlemanspursuits.com/news/luxury/cigars/washingtons-proposed-cigar-tax-could-reshape-industry-69769d201855bf8141745290