This bill amends RCW 69.50.535 to increase the cannabis excise tax on high THC cannabis products. The current tax rate of 37 percent is maintained for cannabis concentrates, useable cannabis, and cannabis-infused products with a THC concentration of 35 percent or lower. However, a new tax rate of 50 percent is introduced for cannabis concentrates and useable cannabis with a THC concentration greater than 35 percent. The bill also clarifies that the cannabis excise tax is separate from general state and local sales taxes and must be itemized on sales receipts. Additionally, the tax must be reflected in price lists and advertising by licensed cannabis retailers.

The bill includes provisions for medical cannabis sales, stating that the excise tax does not apply to sales made by retailers with a medical cannabis endorsement to qualifying patients until June 30, 2029. Sellers making exempt sales must maintain eligibility information, and the board is required to provide a separate tax reporting line for these exemptions. The bill also mandates that the board regularly review tax levels and make recommendations to the legislature regarding adjustments to discourage use while competing with illegal market prices. Certain reporting requirements have been removed, streamlining the oversight process.

Statutes affected:
Original Bill: 69.50.535