A new bill filed today by State Representative Kristine Reeves (D) would overhaul how marijuana is taxed in Washington, eliminating the state’s current retail excise tax and replacing it with a system based on product weight and THC content.
House Bill 2433 (PDF) would remove the existing 37% excise tax applied at the point of sale and instead impose fixed excise rates tied to product type, package size, and potency. The current 37% tax rate is the highest in the nation, well above any other state (Michigan is the second highest at 24%).
Under the bill, usable marijuana and prerolls would be taxed at $2.75 per gram for packages weighing under seven grams, $2.50 per gram for products weighing between seven and 13.9 grams, $2.25 per gram for packages between 14 and 27.9 grams, and $1.75 per gram for products weighing 28 grams or more. Cannabis trim would be taxed at lower rates, set at $1 per gram for packages under seven grams, $0.75 per gram for packages weighing between seven and 27.9 grams, and $0.50 per gram for packages of 28 grams.
Concentrates and infused products would move to a potency-based tax structure. Cannabis concentrates would be taxed at $0.01187 per milligram of THC. Solid edibles and topicals would be taxed at $0.07427 per milligram of THC, while liquid edibles would be taxed at $0.04051 per milligram of THC. State and local sales taxes would continue to apply separately, and the excise tax would be itemized on receipts and reflected in shelf pricing.
Based on this tax rate, a gram of cannabis concentrate that has around 90% THC would have a tax of around $10.68, which is drastically higher than the current average tax of around $3 for a gram of concentrate.
As drafted, the bill would continue to exempt qualifying medical marijuana patients from paying the excise tax through June 30, 2029, provided purchases meet existing compliance and testing requirements. Revenue collected under the new tax structure would continue to be deposited into the state’s dedicated cannabis account.
The bill has been referred to the House Consumer Protection & Business Committee, where it’s expected to be scheduled for a public hearing. If given approval by the committee and two subsequent committees, the proposal will be sent to the full House of Representatives for consideration. Passage through the House will send the measure to the Senate.
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