Washington State Senate Votes to Eliminate Excise Taxes on Recreational Cannabis Sales
With a 26 to 22 vote, Washington’s full Senate has given approval to Senate Bill 6062, a proposal to eliminate several excise taxes on recreational cannabis sales.
Under Washington’s current recreational cannabis tax structure, cannabis is taxed 25% at three different levels, when producers sell to processors, when processors sell to retailers, and when retailers sell to end consumers. This tax structure has led to prices on recreational cannabis to be considerably higher than that of Colorado, where cannabis is taxed just once.
Senate Bill 6062 would remove the excise tax on cannabis sales by producers and processors, with the only tax being placed on retail sales. The tax would, however, be raised from 25% to 37%.
Senate Bill 6062 now heads to the House of Representatives for consideration.