10 Year Analysis Complete for Senate Bill 5650

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UPDATE: The 10 year analysis for SB 5650, titled AN ACT Relating to authorizing a local excise tax on cannabis, has been completed. 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:

Section 1(4) The liquor and cannabis board must perform the collection of taxes under this section on behalf of a county or city and the state treasurer must distribute those taxes as available on a monthly basis to the county and cities within the county. Before the effective date of a resolution or ordinance to impose an excise tax under this section, the legislative authority of the county or city must contract with the liquor and cannabis board for tax administration and collection. The liquor and cannabis board may deduct a percentage amount, as provided by contract, not to exceed one percent of the taxes collected for administration and collection expenses incurred by the board.

The language above directs that the Board may deduct a percentage of taxes, but does not require it. In addition, there is no way to know how much tax revenue would be generated by this bill, that would be subject to the administration fee.

Therefore the cash receipt impact is INDETERMINATE.

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

Liquor and Cannabis Board


Bill sponsors and contact information:

Senator Keith Wagoner, Prime Sponsor
Republican
(360) 786-7676
keith.wagoner@leg.wa.gov

Senator Leonard Christian
Republican
(360) 786-7606
leonard.christian@leg.wa.gov

Senator Jeff Holy
Republican
(360) 786-7610
jeff.holy@leg.wa.gov




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

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