WA cigarette smuggling could increase under Inslee tax

Nearly one-third of Washington’s potential cigarette tax revenues were lost to smuggling or tax evasion in the 2013 fiscal year, according to estimates by the state Department of Revenue. Gov. Jay Inslee is proposing to increase the state’s cigarette taxes by 50 cents per pack. Washington state has steadily raised its cigarette taxes in the last 20 years as a means to both curb smoking and raise revenue.At the same time, though, something else has gone up: The rate at which people evade the tax by buying cigarettes out of state or online.Nearly one-third of Washington’s potential cigarette tax revenues were lost to smuggling or tax evasion in the 2013 fiscal year, according to estimates by the state Department of Revenue.