Some higher Washington state taxes take effect Saturday

On May 1, some higher taxes will take effect, including a $1 tax hike on a pack of cigarettes.

Last week, Gov. Chris Gregoire signed into law several new tax changes that will take effect on Saturday, such as hiking the state tax on a pack of cigarettes to $3.025 and increasing taxes on other tobacco products.

The governor also signed a temporary hike in the business and occupation (B&O) tax that takes effect on Saturday. The tax rises to 1.8 percent of gross income from 1.5 percent and affects all service businesses except hospitals and scientific research and development activities.

On June 1, bottled water, candy and gum sales will be subject to the retail sales tax. Previously, those products were exempt from the tax. Other tax hikes that will take effect include an additional tax of 50 cents per gallon of beer, or 28.1 cents per six-pack of beer. (Washington state microbreweries making less than 60,000 barrels of beer are exempt from the hike).

New increases also include a 2-cent hike on 12-ounce carbonated beverages.

The tax increases are projected to raise close to $800 million in this biennium.