During the 2025-2026 Legislative Session in Olympia, there were new tax proposals introduced that would have made Washington’s already over-taxed cannabis products even more expensive. Lawmakers called these new taxes “flat taxes.” They were not. Many of you took action to let legislators know that these new proposals would have given a tax break to high-end, luxury products, while jacking up the prices for everyone else. That meant that working people would have paid more, while those who can afford premium brands pay less.
Because of many of you, these taxes did not proceed through the legislative process…this time. But we must remain vigilant.
There is work ahead to assure that meaningful, beneficial policy that benefits cannabis consumers and license-holders alike become tax reforms that the industry collaborates on together in the months ahead. Stay tuned.
Massive Tax Increase
Washington already taxes cannabis at 37% — the highest excise tax on legal cannabis in the world. Proposals would have pushed that burden even higher. Some would have increased the excise tax directly, while others would have imposed a so-called “flat tax” that would effectively double taxes on most products — and for some, triple or even quadruple them.
Hit Working Class Consumers Hardest
Some proposals would have increased cannabis taxes across the board. Additional proposals would have rewarded luxury cannabis brands with lower taxes and punished consumers who choose more affordable products. That is the definition of a regressive tax.
Push People to the Illicit Market
When legal cannabis becomes too expensive, people don’t stop buying, they just turn to unregulated, untaxed illegal markets. That means unreliable products for consumers and less state tax revenue for critical services.
