Washington Nicotine Tax Lawsuit: Judge Upholds 95% Vape Tax
A Washington judge has denied a request to halt the state’s new 95% excise tax on nicotine products, dealing a major blow to retailers who argue the levy is destroying small businesses. Attorney Jackson Maynard, representing the vape industry, described the tax as “draconian,” citing one client who accrued an $80,000 tax bill in just the first two weeks of the year on inventory they had already paid taxes on.
Key Takeaways
- Injunction Denied: The court rejected the legal challenge; the 95% tax remains fully effective as of Jan 1.
- Price Surge: A standard $7.00 product now costs $15.06 after excise and sales taxes are applied.
- Broad Scope: The tax applies to all nicotine products, including vapes, patches, and synthetic nicotine.
- Legal Fight: Maynard argues the legislature “messed up” the bill’s drafting, but the judge was unswayed.
The Financial Impact on Consumers and Shops
The new law drastically alters the market landscape. Effective January 1, the tax forces retailers and distributors to report inventory immediately. Maynard contends that the legislature failed to accurately reflect the tax change in the bill’s title or properly amend existing vapor product laws. Despite these arguments, the immediate reality is a near-doubling of consumer prices.
| Product Price (2025) | New Price (With 95% Tax) | Impact |
|---|---|---|
| $7.00 | $15.06 | >100% Increase for Consumer |
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