Top Takeaways:
- A judge denied an injunction sought by vape retailers challenging Washington’s new nicotine tax.
- The 95% excise tax took effect Jan. 1 and applies broadly to nicotine products, including vapes and synthetic nicotine.
- Plaintiffs say the levy is crippling small businesses and argue lawmakers botched the bill’s drafting and title language.
A legal challenge seeking to halt Washington State’s newly implemented nicotine tax failed last week after a judge denied an injunction aimed at blocking the state’s new 95% excise levy on nicotine products.
Vape retailers behind the lawsuit argue the tax is crushing small businesses and was improperly enacted. Attorney Jackson Maynard, representing the retailers, called the levy “draconian” and said some store owners are being forced to pay steep taxes on inventory already purchased.
“One of my clients, mentioned today in the hearing, is already paying $80,000 in the first two weeks on inventory that he’s already paid taxes on,” Maynard said.
Maynard said the fight will continue, arguing the Legislature failed to properly amend Washington’s vapor product law and did not accurately reflect the scope of the tax change in the bill’s title.
The new tax took effect Jan. 1, applying a 95% excise tax to all tobacco and nicotine products, including e-cigarettes, nicotine patches, vapes, and synthetic nicotine products.
The tax could more than double consumer pricing after excise and sales taxes are added, citing an example where a nicotine product priced at $7 in 2025 would rise to $15.06 in 2026, according to media reports.
Under the policy, retailers and distributors are required to report inventory changes on their first tax return after the effective date
