Revised Code of Washington
Wash. Rev. Code § 43.06.455 (2026)
✓ current as of May 2026
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(1) The governor may enter into cigarette tax contracts concerning the sale of cigarettes. All cigarette tax contracts shall meet the requirements for cigarette tax contracts under this section. Except for cigarette tax contracts under RCW 43.06.460, the rates, revenue sharing, and exemption terms of a cigarette tax contract are not effective unless authorized in a bill enacted by the legislature.
(2) Cigarette tax contracts shall be in regard to retail sales in which Indian retailers make delivery and physical transfer of possession of the cigarettes from the seller to the buyer within Indian country, and are not in regard to transactions by non-Indian retailers. In addition, contracts shall provide that retailers shall not sell or give, or permit to be sold or given, cigarettes to any person under the age of eighteen years.
(3) A cigarette tax contract with a tribe shall provide for a tribal cigarette tax in lieu of all state cigarette taxes and state and local sales and use taxes on sales of cigarettes in Indian country by Indian retailers. The tribe may allow an exemption for sales to tribal members.
(4) Cigarette tax contracts shall provide that all cigarettes possessed or sold by a retailer shall bear a cigarette stamp obtained by wholesalers from a bank or other suitable stamp vendor and applied to the cigarettes. The procedures to be used by the tribe in obtaining tax stamps must include a means to assure that the tribal tax will be paid by the wholesaler obtaining such cigarettes. Tribal stamps must have serial numbers or some other discrete identification so that each stamp can be traced to its source.
(5) Cigarette tax contracts shall provide that retailers shall purchase cigarettes only from:
(a) Wholesalers or manufacturers licensed to do business in the state of Washington;
(b) Out-of-state wholesalers or manufacturers who, although not licensed to do business in the state of Washington, agree to comply with the terms of the cigarette tax contract, are certified to the state as having so agreed, and who do in fact so comply. However, the state may in its sole discretion exercise its administrative and enforcement powers over such wholesalers or manufacturers to the extent permitted by law;
(c) A tribal wholesaler that purchases only from a wholesaler or manufacturer described in (a), (b), or (d) of this subsection; and
(d) A tribal manufacturer.
(6) Cigarette tax contracts shall be for renewable periods of no more than eight years. A renewal may not include a renewal of the phase-in period.
(7) Cigarette tax contracts shall include provisions for compliance, such as transport and notice requirements, inspection procedures, stamping requirements, recordkeeping, and audit requirements.
(8) Tax revenue retained by a tribe must be used for essential government services. Use of tax revenue for subsidization of cigarette and food retailers is prohibited.
(9) The cigarette tax contract may include provisions to resolve disputes using a nonjudicial process, such as mediation.
(10) The governor may delegate the power to negotiate cigarette tax contracts to the department of revenue. The department of revenue shall consult with the *liquor control board during the negotiations.
(11) Information received by the state or open to state review under the terms of a contract is subject to the provisions of RCW 82.32.330.
(12) It is the intent of the legislature that the *liquor control board and the department of revenue continue the division of duties and shared authority under chapter 82.24 RCW and therefore the *liquor control board is responsible for enforcement activities that come under the terms of chapter 82.24 RCW.
(13) Each cigarette tax contract shall include a procedure for notifying the other party that a violation has occurred, a procedure for establishing whether a violation has in fact occurred, an opportunity to correct such violation, and a provision providing for termination of the contract should the violation fail to be resolved through this process, such termination subject to mediation should the terms of the contract so allow. A contract shall provide for termination of the contract if resolution of a dispute does not occur within twenty-four months from the time notification of a violation has occurred. Intervening violations do not extend this time period. In addition, the contract shall include provisions delineating the respective roles and responsibilities of the tribe, the department of revenue, and the *liquor control board.
(a) "Essential government services" means services such as tribal administration, public facilities, fire, police, public health, education, job services, sewer, water, environmental and land use, transportation, utility services, and economic development;
(b) "Indian retailer" or "retailer" means (i) a retailer wholly owned and operated by an Indian tribe, (ii) a business wholly owned and operated by a tribal member and licensed by the tribe, or (iii) a business owned and operated by the Indian person or persons in whose name the land is held in trust; and
(c) "Indian tribe" or "tribe" means a federally recognized Indian tribe located within the geographical boundaries of the state of Washington.
[ 2001 c 235 s 2.]
Notes:
*Reviser's note: The "state liquor control board" was renamed the "state liquor and cannabis board" by 2015 c 70 s 3.
Notes of Decisions
Cited in 12
cases (2 in the last 5 years), 2005–2023 · leading case: United States v. Funds From First Reg'l Bank Account XXXXX1859 Held in the Name of R K Co., 639 F. Supp. 2d 1203 (W.D. Wash. 2009).
United States v. Funds From First Reg'l Bank Account XXXXX1859 Held in the Name of R K Co., 639 F. Supp. 2d 1203 (W.D. Wash. 2009). “) However, neither the Contract nor its authorizing state statute, Wash. Rev.Code § 43.06.455, support such an argument.”
Nisqually Indian Tribe v. Gregoire, 623 F.3d 923 (9th Cir. 2010). “Wash. Rev.Code § 43.06.455. Under these contracts, an Indian tribe can collect tribal taxes, in lieu of state and local sales and use taxes, when a tribal member retailer sells tobacco in Indian country.”
Matheson v. Gregoire, 139 Wash. App. 624 (Wash. Ct. App. 2007). “RCW 43.06.455(5) and (8) state: (5) Cigarette tax contracts shall provide that retailers shall purchase cigarettes only from: (b) Out-of-state wholesalers or manufacturers who, although not licensed to do business in the state of Washington, agree to comply with the terms of the…”
Matheson v. Gregoire, 161 P.3d 486 (Wash. Ct. App. 2007). “[8] RCW 43.06.455(5) and RCW 45.06.455(8) state: (5) Cigarette tax contracts shall provide that retailers shall purchase cigarettes only from: .”
State v. Comenout, 267 P.3d 355 (Wash. 2011). “295(1) provides that the state cigarette tax does not apply to the “sale, use, consumption, handling, possession, or distribution of cigarettes by an Indian retailer during the effective period of a cigarette tax contract subject to RCW 43.06.455.” An “Indian retailer” includes…”
Matheson v. Washington State Liquor Control Bd., 130 P.3d 897 (Wash. Ct. App. 2006). “RCW 43.06.455(5)(b). ¶25 The Swinomish Tribe has a cigarette tax contract with Washington state that requires the tribe to do business with Washington wholesalers or self-certified, out-of-state wholesalers.”
Nisqually Indian Tribe v. Gregoire, 649 F. Supp. 2d 1203 (W.D. Wash. 2009). “It is also undisputed that the Squaxin-owned entity operating the Smoke Shop at Frank’s Landing is an “Indian retailer” as defined by RCW § 43.06.455(2), (14)(b). Finally, the parties agree that the enterprise is located within “Indian Country” as defined at 18 U.”
Matheson v. State Liquor Control Bd., 130 P.3d 897 (Wash. Ct. App. 2006). “RCW 43.06.455(5)(b). ¶ 25 The Swinomish tribe has a cigarette tax contract with Washington state that requires the tribe to do business with Washington wholesalers or self-certified, out-of-state wholesalers.”
State Of Washington V. Am. Tobacco Co. (Wash. Ct. App. 2023). “RCW 43.06.455. Under the compact system, cigarettes sold on reservations are subject to a tribal excise tax—equal to that of the State—in lieu of the State excise tax.”
Wilbur v. Locket, 423 F.3d 1101 (9th Cir. 2005). “The first anticipated injury concerns provisions of the Compact imposing taxes on sales to other tribe members and the second anticipated injury relates to compliance with the regulatory scheme articulated in Wash. Rev.Code § 43.06.455(4), (5), (7). We need not get to the first…”
State Of Washington V. Am. Tobacco Co. (Wash. Ct. App. 2023). “RCW 43.06.455. Under this compact system, cigarettes sold on reservations are subject to a tribal excise tax—equal to that of the State—in lieu of the State excise tax.”
Robert R. Comenout, Sr. v. Washington State Liquor Control Bd. (Wash. Ct. App. 2016). “"30 In Comenout, Comenout argued his store met the definition of "Indian retailer" and that "because the possession of the cigarettes occurred between the effective period of the cigarette tax compact between Washington and the Quinault Indian Nation, Washington's [cigarette]…”
— Wash. Rev. Code § 43.06.455(1) — 2 cases
Nisqually Indian Tribe v. Gregoire, 623 F.3d 923 (9th Cir. 2010). “Wash. Rev.Code § 43.06.455. Under these contracts, an Indian tribe can collect tribal taxes, in lieu of state and local sales and use taxes, when a tribal member retailer sells tobacco in Indian country.”
United States v. Funds From First Reg'l Bank Account XXXXX1859 Held in the Name of R K Co., 639 F. Supp. 2d 1203 (W.D. Wash. 2009). “) However, neither the Contract nor its authorizing state statute, Wash. Rev.Code § 43.06.455, support such an argument.”
— Wash. Rev. Code § 43.06.455(12) — 1 case
United States v. Funds From First Reg'l Bank Account XXXXX1859 Held in the Name of R K Co., 639 F. Supp. 2d 1203 (W.D. Wash. 2009). “) However, neither the Contract nor its authorizing state statute, Wash. Rev.Code § 43.06.455, support such an argument.”
— Wash. Rev. Code § 43.06.455(13) — 1 case
Nisqually Indian Tribe v. Gregoire, 623 F.3d 923 (9th Cir. 2010). “Wash. Rev.Code § 43.06.455. Under these contracts, an Indian tribe can collect tribal taxes, in lieu of state and local sales and use taxes, when a tribal member retailer sells tobacco in Indian country.”
— Wash. Rev. Code § 43.06.455(14)(b) — 2 cases
State v. Comenout, 267 P.3d 355 (Wash. 2011). “295(1) provides that the state cigarette tax does not apply to the “sale, use, consumption, handling, possession, or distribution of cigarettes by an Indian retailer during the effective period of a cigarette tax contract subject to RCW 43.06.455.” An “Indian retailer” includes…”
Robert R. Comenout, Sr. v. Washington State Liquor Control Bd. (Wash. Ct. App. 2016). “"30 In Comenout, Comenout argued his store met the definition of "Indian retailer" and that "because the possession of the cigarettes occurred between the effective period of the cigarette tax compact between Washington and the Quinault Indian Nation, Washington's [cigarette]…”
— Wash. Rev. Code § 43.06.455(2) — 2 cases
United States v. Funds From First Reg'l Bank Account XXXXX1859 Held in the Name of R K Co., 639 F. Supp. 2d 1203 (W.D. Wash. 2009). “) However, neither the Contract nor its authorizing state statute, Wash. Rev.Code § 43.06.455, support such an argument.”
Nisqually Indian Tribe v. Gregoire, 649 F. Supp. 2d 1203 (W.D. Wash. 2009). “It is also undisputed that the Squaxin-owned entity operating the Smoke Shop at Frank’s Landing is an “Indian retailer” as defined by RCW § 43.06.455(2), (14)(b). Finally, the parties agree that the enterprise is located within “Indian Country” as defined at 18 U.”
— Wash. Rev. Code § 43.06.455(3) — 3 cases
United States v. Funds From First Reg'l Bank Account XXXXX1859 Held in the Name of R K Co., 639 F. Supp. 2d 1203 (W.D. Wash. 2009). “) However, neither the Contract nor its authorizing state statute, Wash. Rev.Code § 43.06.455, support such an argument.”
State Of Washington V. Am. Tobacco Co. (Wash. Ct. App. 2023). “RCW 43.06.455. Under the compact system, cigarettes sold on reservations are subject to a tribal excise tax—equal to that of the State—in lieu of the State excise tax.”
State Of Washington V. Am. Tobacco Co. (Wash. Ct. App. 2023). “RCW 43.06.455. Under this compact system, cigarettes sold on reservations are subject to a tribal excise tax—equal to that of the State—in lieu of the State excise tax.”
— Wash. Rev. Code § 43.06.455(4) — 3 cases
Wilbur v. Locket, 423 F.3d 1101 (9th Cir. 2005). “The first anticipated injury concerns provisions of the Compact imposing taxes on sales to other tribe members and the second anticipated injury relates to compliance with the regulatory scheme articulated in Wash. Rev.Code § 43.06.455(4), (5), (7). We need not get to the first…”
State Of Washington V. Am. Tobacco Co. (Wash. Ct. App. 2023). “RCW 43.06.455. Under the compact system, cigarettes sold on reservations are subject to a tribal excise tax—equal to that of the State—in lieu of the State excise tax.”
State Of Washington V. Am. Tobacco Co. (Wash. Ct. App. 2023). “RCW 43.06.455. Under this compact system, cigarettes sold on reservations are subject to a tribal excise tax—equal to that of the State—in lieu of the State excise tax.”
— Wash. Rev. Code § 43.06.455(5) — 2 cases
Matheson v. Gregoire, 139 Wash. App. 624 (Wash. Ct. App. 2007). “RCW 43.06.455(5) and (8) state: (5) Cigarette tax contracts shall provide that retailers shall purchase cigarettes only from: (b) Out-of-state wholesalers or manufacturers who, although not licensed to do business in the state of Washington, agree to comply with the terms of the…”
Matheson v. Gregoire, 161 P.3d 486 (Wash. Ct. App. 2007). “[8] RCW 43.06.455(5) and RCW 45.06.455(8) state: (5) Cigarette tax contracts shall provide that retailers shall purchase cigarettes only from: .”
— Wash. Rev. Code § 43.06.455(5)(b) — 4 cases
Matheson v. Gregoire, 139 Wash. App. 624 (Wash. Ct. App. 2007). “RCW 43.06.455(5) and (8) state: (5) Cigarette tax contracts shall provide that retailers shall purchase cigarettes only from: (b) Out-of-state wholesalers or manufacturers who, although not licensed to do business in the state of Washington, agree to comply with the terms of the…”
Matheson v. Gregoire, 161 P.3d 486 (Wash. Ct. App. 2007). “[8] RCW 43.06.455(5) and RCW 45.06.455(8) state: (5) Cigarette tax contracts shall provide that retailers shall purchase cigarettes only from: .”
Matheson v. Washington State Liquor Control Bd., 130 P.3d 897 (Wash. Ct. App. 2006). “RCW 43.06.455(5)(b). ¶25 The Swinomish Tribe has a cigarette tax contract with Washington state that requires the tribe to do business with Washington wholesalers or self-certified, out-of-state wholesalers.”
Matheson v. State Liquor Control Bd., 130 P.3d 897 (Wash. Ct. App. 2006). “RCW 43.06.455(5)(b). ¶ 25 The Swinomish tribe has a cigarette tax contract with Washington state that requires the tribe to do business with Washington wholesalers or self-certified, out-of-state wholesalers.”
— Wash. Rev. Code § 43.06.455(8) — 1 case
United States v. Funds From First Reg'l Bank Account XXXXX1859 Held in the Name of R K Co., 639 F. Supp. 2d 1203 (W.D. Wash. 2009). “) However, neither the Contract nor its authorizing state statute, Wash. Rev.Code § 43.06.455, support such an argument.”
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