Cannabis taxation is a cornerstone of regulations. Generally indexed on the quantities of cannabis sold between producer and wholesaler and/or directly on retail purchases, taxes are used to finance regulation. The sums generated are then reinjected into the state education system, roads, real estate programs or reintegration initiatives.
A proposed bill in Washington state would dramatically increase the tax on cannabis products based on THC concentration. Under the proposal, cannabis excise taxes would be restructured into three rates based on product type and THC concentration.
According to the bill:
- a 37% tax would be imposed on flowers and concentrates with a THC concentration of less than 35%
- a 50% tax would be added to flowers and concentrates with a THC concentration between 35 and 60%
- and a 65% tax would be included on sales of flowers and concentrates with a THC concentration above 60%
The measure would also limit the purchase of products with a high concentration of THC to people aged 25 and over.
Republican Rep. Kelly Chambers said that since Washington state legalized cannabis for adults a decade ago, “the market has driven demand for more potent products.”
“So that’s why they’re very popular, and why they exist. At the same time, we want to maintain public safety. she explained to FOX 13
Adan Espino, Executive Director of the Craft Cannabis Coalitionsaid the high taxes give the organization “heartburn and worry” because they might just push people into the unregulated market.
He noted that high-THC cannabis products “should not be in the hands of young people or minors and…when used inappropriately…can certainly cause harm.”
The proposal is currently under review by the House of Representatives Committee on Controlled Substances and Gaming.
