10 Year Analysis Complete for House Bill 2075

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UPDATE: The 10 year analysis for HB 2075, titled AN ACT Relating to increasing the cannabis excise tax on high THC cannabis products, 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:

It is difficult to make any assumption about how the increased tax rate may drive a shift in product consumption so that consumers avoid paying the higher rate.  Additionally, the agency's Cannabis Central Reporting System (CCRS) does not have precise data, only allowing for general estimates.  For these reasons the cash receipts impact is indeterminate.  

With that said, there can be assumptions made to determine what the potential impact could be.  During FY24, 7% of useable cannabis and 91% of concentrates reported as tested in CCRS had a THC concentration over 35%.  It is not known how many of those products were sold at retail.  

FY24 retail sales of useable cannabis were $527,027,027.  If it is assumed 7% of the useable cannabis sold at retail had a TCH concentration over 35%, then $36,891,892 would be subject to the new 50% excise tax rate.  Additional cash receipts could be $4,795,946 [($36,891,892 x 50% = $18,445,946) - ($36,891,892 x 37% = $13,650,000)] per year on useable cannabis.

FY24 retail sales of cannabis concentrates were $478,378,378.  If it is assumed 91% of the concentrates sold at retail had a THC concentration over 35%, then $435,324,324 would be subject to the new 50% excise tax rate.  Additional cash receipts could be $56,592,162 [($435,324,324 x 50% = $217,662,162) - ($435,324,324 x 37% = $161,070,000)] per year on cannabis concentrates.

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

Liquor and Cannabis Board


Bill sponsors and contact information:




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

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