In Washington, a bill aims to index taxes to THC levels

Cannabis taxation is a cornerstone of regulation. Generally indexed to the quantities of cannabis sold between producer and wholesaler and/or directly on retail purchases, taxes are used to finance regulation. Visit are then re-injected into the business in the state education system, roads, real estate programs or rehabilitation initiatives.

Proposed bill in Washington state would dramatically increase tax on cannabis products as a function of THC concentration. Under the proposal, cannabis excise taxes would be restructured into three rates based on product type and THC concentration.

According to the bill :

• a tax of 37 % would be imposed on flowers and concentrates with a THC concentration of less than 35 %
• a tax of 50 % would be added to flowers and concentrates with a THC concentration of between 35 and 60 %
• and a tax of 65 % would be included on sales of flowers and concentrates with a THC concentration exceeding 60 %

The measure would also restrict the purchase of products with high THC concentrations to people aged 25 and over.

Republican Representative Kelly Chambers said that since the state of Washington has legalized cannabis for adults ten years ago, «the market has driven demand for more powerful products».

«So that's why they're very popular, and why they exist. At the same time, we want to maintain public safety,» she told FOX 13.

Adan Espino, Executive Director of Craft Cannabis Coalition, said that high taxes give the organization «heartburn and concern» because they could simply drive people into the unregulated market.

He pointed out that products made from cannabis with high THC content «should not be in the hands of young people or minors and ... when used inappropriately ... can certainly cause harm».

The proposal is currently being considered by the House of Representatives Controlled Substances and Gaming Committee.