Washington Senate Votes To Eliminate Marijuana Excise Taxes

There may be a glimmer of hope for what is widely considered an untenable tax structure in Washington State.

The Washington State Senate passed a bill removing the excise tax on recreational marijuana sales by producers and processors, and will tax only retail sales.

As it stands, a 25% excise tax at three transfer points: when producers sell to processors, when processors sell to retailers, and when retailers sell to end consumers. Business owners in the industry say that tax structure inhibits their ability to do business and drives up prices.

The new bill proposes a one-time tax of 37% on retail sales.

The proposal, known as SB 6062, narrowly passed the senate has been sent to the house for consideration, according to the the legislature’s website.

Most of the tax money would be sent to a general fund while some will be sent to an education fund. Of the amount being sent to the general fund, $6 million would go to local governments, the AP reported.

8 comments on “Washington Senate Votes To Eliminate Marijuana Excise Taxes
  1. Marguerite Arnold on

    This is not a sustainable solution either. What this means is that medical patients, for starters, will be taxed 37% at the register for THC. It also means that the business tax infrastructure of the entire industry will be eviscerated. This is just as much of a disaster.

    Reply
  2. Jim MacRae on

    As approximately 66% of the total I-502 revenue stream is coming from Retail, this would NOT “eviscerate the business tax infrastructure of the industry”.

    It would, however, give smaller wholesalers a fighting chance at survival.

    Reply
  3. pam on

    The first statement of HB2136 intent reads:

    Includes intent language and a tax preference performance statement for the
    sales and use tax exemption for qualifying patients and designated providers.

    A tax exemption means patients will not be charged the 30% (not 37%) excise tax nor the sales tax.

    HB2136 is a decent attempt to bring medical cannabis into a credible public safety sphere of business.

    SB 5052 is the bill that will eviscerate what you know about the operations of the medical cannabis business. As well, it is antithesis to republican governance but pointed by martial law investment of law enforcement by the current school of republicans.

    Reply
  4. Matt Gehringer on

    20% of the Recreational marijuana stores are making more than 100 thousand dollars profit a month now. Some stores are making half a million dollars a month in profits. Many growers will make more than one million dollars in profits in 2015. And you want to reduce their taxes so they can make even more money?

    Reply
    • Sysco on

      Where do you come up with these ridiculous numbers everyone in the I 502 industry is hanging on and waiting on the rescheduling of cannabis at a federal level, then yes a small percentage will make millions while everyone else fades away.

      Reply
  5. Janet king on

    No one is talking about the thousands of jobs that just went bye bye. These people who just lost their jobs here in king county are not making their bills this month. All this legislation is putting people out of jobs immediately and nobody saw it coming. They went to work and we’re doing their jobs and these people came in and said go home, you don’t have a job anymore. This state SUCKS. It’s food stamp time and good luck finding a decent job

    Reply

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