WA Moves Closer to Overhauling Marijuana Tax Structure

Washington State growers and processors would no longer pay a 25% tax on cannabis and marijuana-based products under a bill awaiting Gov. Jay Inslee’s signature.

The measure – House Bill 2136 – would replace the state’s three-tier tax system with a single excise tax of 37% assessed on sales at retail cannabis stores.

The move could lower the final cost of cannabis to consumers, which would help bolster sales.

Under the current law, a 25% excise tax is assessed when inventory is transferred from growers to processors, then again from processors to retailers, and finally from retailers to customers.

The bill to change that tax structure passed the House on Friday with a 59-38 vote and the Senate on Saturday by a tally of 36-7.

Patients who register for MMJ with the state would be exempt from a separate sales tax if the bill gets Inslee’s approval, as would transactions involving high-CBD, low-THC products.

The bill also would require the state to share tax revenue with local jurisdictions that allow marijuana businesses, and it would revamp zoning requirements to make it easier for cultivation sites and retail outlets to open, according to the Associated Press.

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5 comments on “WA Moves Closer to Overhauling Marijuana Tax Structure
  1. vince shane on

    37% is still too high. In fact this is BS. No other product to my knowledge is taxed at such a high rate. Alcohol doesn’t even come close so why is cannabis being taxed so high. Because it’s product discrimination. If I were in WA I would be fighting this.

  2. David on

    What makes this even worse is now Washington’s medical patients will be forced into paying the 37% tax too.
    I noticed that Vancouver B.C. city officials gave the finger to the Fed’s in Ottawa and are regulating the cities many medical marijuana dispensaries.

    Courage!!! I haven’t seen one American city to stand up like this. Great job Vancouver!

  3. JohnathanAluitiousHempseed da third on

    In the words of Abby Hoffman,and para-phrasing Robert Crumb;FREE DOPE! Medicaid and Medicare patients should have thier medicine provided free,or under the same co-pay arrangements as the oter prescription drugs they need.
    Being allowed to cultivate a few plants for your own consumpion ,should be the rule of thunb(green) if you have one.Care givers should also be able to give away herb;CBD products and seeds,tax free.The cost of a vaporiser to avoid smoking in patient with a C.O.P.D. should be tax deductable if not covered by Medicare or the Affordable Health Care Act.

  4. Cheryl on

    I live in WA state and angry as a medical patient who had a great doctor who has saved my life. Now I cannot go to him for even help with my B/P meds. A lot of us are waiting for next elections where we will show how we feel about this. I cannot believe how messed up my state is and hoping somehow we can fight it. I agree STAND UP.

    • Nick on

      Me too I will be voting against everyone who voted for sb5052 and I boycott 502 cannabis because it’s low quality and their lobbyist group which crafted these laws is why we are in this predicament

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