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 exceeding 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 will not apply to qualifying patients or designated providers purchasing compliant cannabis products until June 30, 2029. Sellers making exempt sales must maintain eligibility information and report exemption amounts separately. The legislation also mandates that all revenues from the cannabis excise tax be deposited into a dedicated cannabis account. Furthermore, the board is tasked with regularly reviewing tax levels and making recommendations to the legislature regarding adjustments to discourage use while competing with illegal market prices.

Statutes affected:
Original Bill: 69.50.535