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WA SB5650

WA SB5650
Authorizing a local excise tax on cannabis.


summary

Introduced
02/04/2025
In Committee
02/04/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

AN ACT Relating to authorizing a local excise tax on cannabis; 2 and adding a new section to chapter 82.14 RCW. 3

AI Summary

This bill authorizes counties and cities in Washington state to impose a local excise tax of up to 2% on the retail sale of cannabis products, including cannabis concentrates, usable cannabis, and cannabis-infused products. The tax can only be implemented through a voter-approved ordinance, with a maximum duration of seven consecutive years. If a county does not impose the tax by July 1, 2027, then a city within that county may do so. The tax is additional to existing state taxes and must be collected from licensed cannabis retailers. The tax revenue will be distributed by the state treasurer, with 15% going to the county or city where the tax was collected, and the remainder distributed proportionally to jurisdictions based on cannabis retail sales. The Liquor and Cannabis Board will handle tax collection on behalf of the county or city, with the ability to deduct up to 1% for administrative expenses. Counties and cities cannot impose the tax concurrently, and they may reimpose the tax for additional seven-year periods with voter approval.

Committee Categories

Budget and Finance

Sponsors (3)

Last Action

First reading, referred to Ways & Means. (on 02/04/2025)

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