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.
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.
