Tax Collected Exclusively at Retail – Effective today, July 1, 2015, tax reforms defined in HB 2136 change the existing marijuana excise tax structure. A 37 percent marijuana excise tax must now be collected exclusively at the retail level.

Effective July 1, 2015: Tax Collected Exclusively at Retail
Effective July 1, 2015, the tax reforms defined in HB 2136 change the existing marijuana excise tax structure into a single point tax that will be assessed at the retail level on consumers, a model similar to a sales tax. RCW 69.50.535 now states that the 37 percent marijuana excise tax is required to be reflected in the list or quoted price but is not included in the price that sales and use taxes are applied to. Marijuana excise taxes are paid by the buyer and held in trust by the retailer, who is liable for all excise taxes incurred at the point of sale, until paid to the Washington State Liquor Control Board (WSLCB) each month.

Changes Not Retroactive
These changes are not retroactive. All licensees will be responsible for all tax obligations incurred from sales prior to July 1, 2015 at the original marijuana excise tax rate of 25 percent. Producers and Processors will no longer be required to pay marijuana excise taxes to WSLCB for sales occurring after June 30, 2015. However, licensees must report regardless of whether they have a tax obligation or not.

Reporting Sales Only
Report only the sales price excluding the 37 percent marijuana excise tax when reporting sales activity into the WSLCB Traceability System. The system will automatically calculate the marijuana excise tax due to the WSLCB for all sales entered.

Contact
If you have additional questions, please contact the WSLCB Marijuana Tax Unit at [email protected] or 360-664-1789.

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