Washington State legislature approves 50 percent cannabis tax for high THC products

Under the bright lights of the Washington State Capitol, lawmakers gathered on April 9, 2025, to discuss a pivotal piece of legislation that could reshape the landscape of cannabis taxation in the state. House Bill 2075, introduced by Representative Davis, aims to increase the excise tax on high THC cannabis products, a move that has sparked both support and concern among various stakeholders.

At the heart of House Bill 2075 is a straightforward yet significant adjustment to the existing cannabis tax structure. Currently, cannabis products with a THC concentration of 35 percent or lower are taxed at 37 percent of their selling price. However, the proposed bill seeks to impose a steeper 50 percent tax on cannabis concentrates and usable cannabis that exceed this THC threshold. This change is designed to address growing public health concerns regarding the potency of cannabis products and their potential impact on consumers, particularly younger individuals.

Supporters of the bill argue that the increased tax on high THC products could serve as a deterrent, potentially reducing consumption among vulnerable populations. They believe that the additional revenue generated from this tax could be funneled into public health initiatives and education programs aimed at responsible cannabis use. “We have a responsibility to protect our communities, especially our youth,” said one advocate during the legislative session. “This bill is a step in the right direction.”

However, the proposal has not been without its detractors. Opponents warn that raising taxes on high THC products could drive consumers back to the black market, undermining the legal cannabis industry that Washington has worked hard to establish. “This bill could have unintended consequences,” cautioned a local business owner. “Instead of helping, it might push people away from regulated products and into unsafe alternatives.”

The economic implications of House Bill 2075 are also significant. If passed, the bill could generate millions in additional tax revenue for the state, which could be allocated to various public services. Yet, the potential for decreased sales in the legal market raises questions about the long-term viability of cannabis businesses in Washington.

As the legislative session progresses, lawmakers will need to weigh the public health benefits against the economic realities of the cannabis market. With passionate voices on both sides of the debate, House Bill 2075 stands as a testament to the ongoing evolution of cannabis policy in Washington. The outcome of this bill could not only influence the state's approach to cannabis taxation but also set a precedent for other states grappling with similar issues. As discussions continue, the eyes of the nation remain fixed on Washington, eager to see how this pivotal moment in cannabis legislation unfolds.