home home Find taxes & rates home Marijuana Taxes due on marijuana

What’s changing on July 1, 2016?

Collective gardens eliminated

  • Collective gardens may no longer operate in Washington.
  • Sales of all types of marijuana (including marijuana concentrates, useable marijuana, and marijuana infused products) are only permitted as authorized by the Liquor and Cannabis Board (LCB).

See Special Notice - Collective gardens eliminated after June 30, 2016

New tax exemptions for medical marijuana
Starting July 1, 2016, new sales and use tax exemptions provided for:

  • Sales and donations of certain marijuana and low-THC products sold by marijuana retailers with a medical endorsement
  • Sales of topical, noningestible low-THC products by certain healthcare professionals
  • Marijuana and low-THC products produced by a cooperative for its members.

See Special Notice - Sales and Use Tax Exemptions for Marijuana Retailers with a Medical Endorsement

 

Applicable taxes

Business and occupation (B&O) tax applies to your business’s gross receipts. You also must collect and remit to Revenue the sales tax on your retail transactions. The fact sheets at right explain your obligations.

No tax exemptions for recreational marijuana

These products do not qualify for either the sales tax exemption for prescription drugs or the sales tax exemption for food and food ingredients. None of Washington’s tax preferences for agricultural products or property tax incentives apply to marijuana businesses.

How to file and pay your taxes

Log on to Revenue’s My Account to file your monthly returns. You must file each month. If you have no business activity to report, you still must file a "no business" return.

You can also pay your taxes through My Account.

Mail checks to:

Washington State Department of Revenue
PO Box 47464
Olympia WA 98504-7464

Making cash payments

You may pay your taxes in cash at any Revenue office. Appointments are highly encouraged for tax payments of $20,000 or more. Please schedule your appointment before the due date. We encourage early payments (before the 25th) if using cash. Penalties may apply if you don’t pay your taxes by the 25th. See Requirements for making cash payments.

Excise taxes (37 percent) paid to Liquor and Cannabis Board

Revenue is NOT accepting tax payments for the LCB. Excise taxes due must be paid to LCB.

Medical marijuana endorsements for retailers

To apply for a medical marijuana endorsement you will need to apply with the LCB. You must already have a retail marijuana endorsement to apply for the medical marijuana endorsement.

Stay up to date on the development of marijuana licenses including: producer, processor, retailer, transportation, research and cooperative registrations, join the LCB listserv.