SPOKANE, WA – Feeling the squeeze, Spokane Valley may ask the state to allow cities to impose a local sales tax on cannabis, which would raise the existing 37% rate to offset future budget deficits.
The topic came up on Tuesday as the Spokane Valley City Council ran through draft priorities ahead of the 2026 legislative session in January. While some priorities focus on public safety and reducing costs associated with litigation and construction, tax flexibility dominated the “fiscal management” category.
Spokane Valley is currently facing a $1.1 million budget deficit ahead of 2026, which the council must balance before January. Local officials have typically been opposed to increasing taxes in an effort to keep the cost of living down, but now they’re weighing their options as revenue growth slows down…