Washington regions’ budget plan could include $1.3 billion in marijuana excise taxes

POLITICO title Washington region’s budget could include nearly $1 billion in excise taxes on marijuana article POLITICO article Washington state’s congressional delegation has agreed to a budget proposal that would allow the state to raise up to $1 million in tax revenue from the sale of marijuana by 2021, in addition to another $400 million for road and bridge projects.

The Senate’s budget resolution would allow for the state’s $1,831.6 billion budget to include a marijuana excise tax.

Marijuana has been legal in Washington since Jan. 1, 2018, and the tax revenue would come from sales to adults 21 and over.

Under the plan, Washington could add up to another half-billion dollars to its general fund.

The additional revenue would go toward funding projects like highway improvements and parks.

The resolution also would include $800 million for a special excise tax on marijuana for retail and for medical purposes, and a separate $1 trillion general fund allocation.

Sen. Tom Harkin, a Vermont Democrat and chairman of the Senate Budget Committee, told reporters that the $1 in excise tax revenue could be used for roads and bridges and other projects.

“The revenue generated by this excise tax would go to other priorities in the state budget,” Harkin said.

Harkin and Sens.

Maria Cantwell of Washington state and Patty Murray of Washington, also a Democrat, also are working on a separate budget resolution that would expand the excise tax, which was approved in the Senate last month.

A companion resolution that will be sent to the House for approval could include a proposal to levy an excise tax of $500 on all marijuana-related products and $100 on any retail sales, including from restaurants, shops, and convenience stores.

The proposal is also expected to include new fees for marijuana delivery services.

Senate Majority Leader Bill Cadman said in a statement that the Senate budget plan “will ensure we are on track to get marijuana legalized for all adults by 2020.”

“The Senate is working on another version of the budget resolution, and this time we have the opportunity to provide certainty to our state about how the budget will fund essential investments in our economy and public safety,” Cadman added.

“We are confident we can accomplish this goal.”

Marijuana is already legal in some states, including California and Washington.

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