AN ACT Relating to the cannabis excise tax;
SB 6328 would revise Washington’s cannabis excise tax structure and related cannabis law definitions. The bill amends numerous definitions in the state’s cannabis and controlled substances statutes to clarify terms such as cannabis, cannabis products, concentrates, edibles, topical products, trim, prerolls, retail outlet, producer, processor, retailer, and social equity plan. It also updates licensing language for cannabis producers, processors, and retailers, including provisions on annual renewals, application and renewal fees, and the circumstances under which retail licenses may be forfeited if a business is not operational within specified timeframes.
The central policy change is a new cannabis excise tax set at 37% of the selling price on retail sales of cannabis concentrates, usable cannabis, and cannabis-infused products. The bill specifies how the tax applies to different product types, requires the tax to be separately itemized, and directs revenue into the dedicated cannabis account. It also requires the Liquor and Cannabis Board to review the tax level and report biennially to the Legislature on sales, tax collections, legal market volume, licensed businesses, illegal outlets, and exempt medical sales, with the stated goal of discouraging use while undercutting illegal market prices. The bill includes a temporary exemption for certain medical cannabis sales through June 30, 2025, and requires separate reporting of exempt amounts.
SB 6328 would amend Washington’s cannabis excise tax statute and related provisions in the state’s cannabis regulatory framework, primarily in Title 69 and the cannabis licensing chapter. It would increase the tax burden on retail cannabis sales by establishing a 37% excise tax on concentrates, usable cannabis, and infused products, while also changing how those products are categorized for tax purposes. The bill would affect cannabis retailers, producers, processors, qualifying patients, designated providers, and the Liquor and Cannabis Board, and would require tax collection, itemization, reporting, and deposit procedures tied to the dedicated cannabis account.
The bill’s stated purpose and structure suggest support for a stronger cannabis tax regime paired with continued market regulation and data reporting. The inclusion of detailed definitions, reporting requirements, and a temporary medical exemption indicates an effort to balance revenue generation and market control with some accommodation for medical cannabis users. No committee transcript or recorded vote information was provided, so there is no direct evidence in the supplied materials of floor or committee sentiment beyond the bill text itself.
The main point of contention is likely the higher 37% excise tax rate, which could raise consumer prices and affect legal market competitiveness. The bill itself acknowledges a policy tension: the tax should discourage use while not undercutting illegal market prices, and it directs the board to review and recommend adjustments accordingly. Another likely area of debate is the temporary exemption for medical cannabis sales, which benefits qualifying patients and designated providers but is limited in duration and subject to compliance documentation. The bill also contains anti-collusion language stating that it does not authorize conduct that would violate state or federal antitrust laws, suggesting sensitivity to concerns about coordinated pricing among retailers.