This report investigates the feasibility of implementing a potency tax on cannabis products in Washington State. Attention is given to the theoretical and technical considerations of replacing the current 37% ad valorem tax basis, in whole or in part, with a tax based on the concentration or amount of THC within a given product.

Interviews were conducted with a broad range of stakeholders to articulate their estimated costs for adaptation and compliance cost faced in response to a hypothetical tax on potency.