Authorizing a local excise tax on cannabis.

SB 5650 allows Washington counties and cities to impose a local excise tax of up to 2% on the retail sale of cannabis products, including concentrates and infused items, but only with voter approval through a ballot measure and for a maximum of seven years. Counties must act before July 1, 2027, or cities within the county may then impose the tax instead. The tax, which is in addition to existing state taxes, will be collected by the state’s Liquor and Cannabis Board and distributed monthly, with 15% of the revenue going to the county and the remainder distributed based on where licensed retailers generate revenue. The bill prohibits counties and cities within the same county from imposing the tax simultaneously.