The bill modifies existing Washington law by amending RCW 82.26.010 to revise and expand the definitions used throughout the tobacco and nicotine products tax chapter. It updates or adds definitions such as actual price, affiliated, board (Liquor and Cannabis Board), department (Department of Revenue), distributor, manufacturer, manufacturer's representative, moist snuff, little cigar, retail outlet, retailer, sale, taxpayer, and a broad definition of person that expressly excludes the United States and federally recognized tribes and enrolled tribal members conducting business within Indian country. It also defines "tobacco products" to include any product containing tobacco or nicotine regardless of form (excluding cigarettes as defined in RCW 82.24.010) and establishes detailed rules for determining the taxable sales price in various affiliated and unaffiliated transaction scenarios, with the department authorized to adopt rules for those determinations. The bill adds two new sections: an effective date of January 1, 2026, and a conditional enactment clause making the act null and void unless specific funding for it is provided in the omnibus appropriations act by June 30, 2025. Agencies and groups affected or referenced include the Department of Revenue, the Liquor and Cannabis Board, manufacturers, distributors, retailers, taxpayers, and federally recognized tribes in Indian country. This is primarily a definitional amendment and a procedural change (conditional funding trigger and effective date); the extracted text does not show any new crimes, penalty changes, tax rates, enforcement procedures, or other substantive changes beyond the revised definitions. It is unclear from the available excerpt whether the bill contains other sections or how the references to 2020 c 139 s 31 and the broader chapter 82.26 RCW interact with these amendments.

If enacted, the bill widens what products are treated like tobacco for tax purposes by saying any product that contains nicotine — whether from tobacco or made synthetically and whether smoked, chewed, placed in the mouth or nasal cavity, or absorbed — falls under the chapter’s rules, and it sets clearer rules for how the taxable sales price is calculated in different sales situations (especially between affiliated parties and when manufacturers sell directly to consumers). That likely means more manufacturers, distributors, and retailers will face tax exposure on a broader set of nicotine products and may need to change how they price and report sales; the Department of Revenue and the Liquor and Cannabis Board would have new rulemaking and enforcement tasks to apply those pricing rules. The change most directly affects manufacturers, distributors, retailers and other taxpayers who sell nicotine products, and it creates potential legal and tax uncertainty for federally recognized tribes and tribal members because the bill both excludes them from the general definition of “person” yet references them in some taxable price provisions for Indian country. The act only takes effect January 1, 2026 and is null and void unless specific funding is included in the omnibus appropriations act by June 30, 2025, so whether these impacts occur depends on that funding decision; the bill text provided does not include tax rates, penalties, or other enforcement details, so the exact financial effects remain unclear.