Notice of Introduction and Public Hearing for House Bill 1595

Office of the Governor / Office of Financial Management sent this bulletin at 02/02/2023 02:48 PM PST

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HB 1595, titled AN ACT Relating to modifying the cannabis excise tax, has been introduced in the House of Representatives. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Liquor and Cannabis Board:

Subsection 1(a) modifies the cannabis excise tax rate. The existing 37% rate on all products is replaced by a tiered structure as shown below:

(i) For useable cannabis and cannabis concentrates with a THC concentration no greater than 20 percent, the tax is equal to 25 percent of the selling price on each retail sale in this state;

(ii) For useable cannabis and cannabis concentrates with a THC concentration greater than 20 percent but no greater than 50 percent, the tax is equal to 35 percent of the selling price on each retail sale in this state;

(iii) For useable cannabis and cannabis concentrates with a THC concentration greater than 50 percent, the tax is equal to 40 percent of the selling price on each retail sale in this state;

(iv) For cannabis-infused edible products in solid or liquid form with no greater than four milligrams of total tetrahydrocannabinol included per serving in the container, the tax is equal to 25 percent of the selling price on each retail sale in this state; and

(v) For cannabis-infused edible products in solid and liquid form with greater than four milligrams of total tetrahydrocannabinol included per serving in the container, the tax is equal to 35 percent of the selling price on each retail sale in this state.

The agency's Cannabis Central Reporting System (CCRS) has the capability for cannabis retailers to report THC percentages on sales to consumers, however, licensees are not required to utilize this functionality and it appears it is used less than 1/10th of the time. Thus, the agency does not have enough data to make an analysis regarding the impact of changing the cannabis excise tax structure would have, so the impact is indeterminate.

You are receiving this email as a subscriber to the Initiative 960 email list. RCW 43.135.031 (I-960) requires that notices be sent each time a bill that raises taxes or fees is: introduced in either house; scheduled for a public hearing; approved by any legislative committee; or passed by either house of the Legislature.

Please note: This email message was sent from a notification-only address. Please do not reply to this message.

HB 1595, titled AN ACT Relating to modifying the cannabis excise tax, has been scheduled for a public hearing by the House Committee on Regulated Substances & Gaming.

Date and Time: 02/06/2023 1:30PM (Subject to change by the Legislature.)
Location: John L. O'Brien Building, House Hearing Rm E and Virtual, Olympia, WA

The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Liquor and Cannabis Board:

Subsection 1(a) modifies the cannabis excise tax rate. The existing 37% rate on all products is replaced by a tiered structure as shown below:

(i) For useable cannabis and cannabis concentrates with a THC concentration no greater than 20 percent, the tax is equal to 25 percent of the selling price on each retail sale in this state;

(iii) For useable cannabis and cannabis concentrates with a THC concentration greater than 50 percent, the tax is equal to 40 percent of the selling price on each retail sale in this state;

Ten-year projection prepared in consultation with the following agencies:

Liquor and Cannabis Board

Bill sponsors and contact information:

Representative Kelly Chambers, Prime Sponsor
Republican
(360) 786-7948
CHAMBERS_KE@leg.wa.gov

Representative Eric Robertson
Republican
(360) 786-7866
Eric.Robertson@leg.wa.gov

House Committee on Regulated Substances & Gaming members and contact information:

Representative Kelly Chambers
Republican
(360) 786-7948
CHAMBERS_KE@leg.wa.gov

Representative Greg Cheney
Republican
(360) 786-7812
Greg.Cheney@leg.wa.gov

Representative Shelley Kloba
Democrat
(360) 786-7900
shelley.kloba@leg.wa.gov

Representative Melanie Morgan
Democrat
(360) 786-7906
MORGAN_ME@leg.wa.gov

Representative Tina Orwall
Democrat
(360) 786-7834
tina.orwall@leg.wa.gov

Representative Kristine Reeves
Democrat
(360) 786-7830
kristine.reeves@leg.wa.gov

Representative Eric Robertson
Republican
(360) 786-7866
Eric.Robertson@leg.wa.gov

Representative Chris Stearns
Democrat
(360) 786-7858
Chris.Stearns@leg.wa.gov

Representative Jim Walsh
Republican
(360) 786-7806
jim.walsh@leg.wa.gov

Representative Kevin Waters
Republican
(360) 786-7994
Kevin.Waters@leg.wa.gov

Representative Sharon Wylie
Democrat
(360) 786-7924
Sharon.Wylie@leg.wa.gov

Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp

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