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Bill

Bill

SB 5650

Authorizing a local excise tax on cannabis.

2025-2026 Regular Session Introduced by Leonard Christian and 2 co-sponsors

Bill authorizes Washington cities and counties to impose local excise taxes on cannabis sales, enabling additional revenue collection beyond state-level taxation.

First reading, referred to Ways & Means.
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Bill Summary · SB 5650

Legislative bill overview

SB 5650 authorizes local governments in Washington to impose their own excise taxes on cannabis sales, in addition to existing state-level cannabis taxes. This would give cities and counties discretionary authority to generate additional revenue from cannabis commerce within their jurisdictions.

Why is this important

Local cannabis taxes could fund community programs, public health initiatives, or local services without requiring state legislative action for each jurisdiction. However, this layered tax approach may affect cannabis market competitiveness, pricing for consumers, and could incentivize purchases in lower-tax areas or the illicit market.

Potential points of contention

  • Tax stacking concerns: Multiple tax layers (state + local) could significantly increase final cannabis prices, potentially disadvantaging legal retailers against illicit competitors
  • Equity and access: Higher prices from cumulative taxes may disproportionately impact lower-income consumers and undermine social equity goals from Washington's original legalization framework
  • Revenue competition: Unclear how local tax authority would interact with existing state cannabis tax revenue or whether it creates incentives for jurisdictions to undercut each other

Compiled from official sources — confirm details with the bill’s official record.

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