Washington state looks to raise revenue from Zyn tax

• Washington state lawmakers are considering a new tax on nicotine pouches under House Bill 2033. The proposed tax could increase the price of a pack from $6 to $11 and generate up to $132 million by 2029.
• Critics, including a local convenience store owner, argue the tax could push users back to more harmful products like cigarettes.
• The American Cancer Society supports the tax. The organization highlights the health risks associated with nicotine products and the potential to reduce tobacco use in the state.

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As the popularity of nicotine pouches continues to rise, Washington state lawmakers are exploring how they can use the growing notoriety of the products to help benefit the state.

Washington lawmakers look to tax all tobacco products

House Bill 2033, introduced by state Rep. Monica Stonier, seeks to close a current loophole by expanding the definition of tobacco products to include all nicotine products. They include those produced from tobacco leaves or derived synthetically.

This change would allow the state to collect taxes on a broader range of nicotine products. They include pouches like Zyn, often marketed as a cleaner alternative to smoking.

Currently, the state’s tax laws do not include nicotine pouches, leaving a gap in potential revenue. Under the proposed bill, the price of a package of nicotine pouches could rise from $6 to $11 due to the tax. House lawmakers are considering the financial benefits of the new tax, which could generate up to $132 million by 2029, as Washington faces a projected budget deficit.

Youth interest in nicotine pouches draws concerns

During testimony before the House Finance Committee, Stonier expressed concern about the rising use of nicotine pouches among minors despite FDA reports showing that less than 2% of kids used the products in 2024. Stonier argued their growing popularity, particularly on social media, is fueling a new wave of nicotine addiction.

“These nicotine patches and the youth I have experienced conversations with are actually increasing nicotine addiction because they are highly concentrated,” said Stonier, adding, “They can be used more frequently without notice.”

The American Lung Association notes one 6-milligram Zyn pouch is equivalent to about one to one and a half cigarettes, intensifying concerns about public health impacts.

The American Cancer Society supports the proposed tax, believing it could help reduce consumption while citing the state’s $3.26 billion annual expenditures on healthcare related to tobacco use.

“Washington State spends $3.26 billion in annual healthcare on tobacco,” said Audrey Miller Garcia with the American Cancer Society, Cancer Action Network. “Legislation like this gives us a chance to reverse these negative effects.”

Opponents speak against bill

However, not everyone is in favor of the proposed tax. Doug Ball, a local convenience store owner, argued that raising the price of nicotine pouches could push users back to more harmful products like cigarettes. “We’re talking about over $1,400 a year in taxes that could cause people to switch back to more harmful products,” Ball said.

While the FDA approved Zyn products in January, classifying them as a safer alternative to cigarettes, they are not FDA-approved methods for quitting smoking. Currently, the FDA only recommends nicotine gum, lozenges and patches for smoking cessation.

How does this help Washington’s budget?

The debate over the tax comes as Washington faces a budget deficit. Democrats estimate a shortfall of around $12 billion, while Republicans believe it is closer to half that amount. Lawmakers hope that HB 2033 will help address some of the state’s financial challenges.

The period for passing bills in the Washington State House has ended, but exceptions are made regarding the state’s budget.