Business and occupation (B&O) tax applies to your business’s gross receipts. You must also collect and submit sales tax on your retail transactions. Retail sales tax must be paid to the Department of Revenue. The fact sheets in the "More Information" section explain your responsibilities.
Purchases for resale
Marijuana processors, producers, and retailers may use a reseller permit when making purchases for resale. Examples include, but are not limited to:
- Marijuana products and accessories.
- Packaging materials and containers.
- Ingredients that physically become part of the article for sale.
Reseller permits may not be used for purchases of products or equipment used to grow cannabis/marijuana.
Collective gardens eliminated
- Collective gardens may not operate in Washington.
- All businesses that sell any type of marijuana in Washington (including marijuana concentrates, useable marijuana, and marijuana infused products) must be licensed with the Liquor and Cannabis Board (LCB).
- Any business that sells marijuana must file and pay taxes to the department, regardless of their license status with LCB.
Tax exemptions for medical marijuana
Sales and use tax exemptions are available for:
- Sales and donations of marijuana and low-THC products by marijuana retailers with a medical endorsement to customers with recognition cards.
- Sales of high-CBD compliant marijuana products by retailers with a medical endorsement to all consumers.
- Sales and donations of topical, nondigestible low-THC products by certain healthcare professionals to qualifying patients.
- Marijuana and low-THC products produced by a cooperative for its members.
Medical marijuana endorsements for retailers
To get a medical marijuana endorsement you will need to apply with the Liquor and Cannabis Board (LCB). You must already have a retail marijuana endorsement to apply for the medical marijuana endorsement.
How to file and pay your taxes
Log on to Revenue’s My DOR to file your monthly returns. You must file each month. If you have no business activity to report, you must file a "no business" return.
You must also pay your taxes through My DOR. Businesses are required to electronically pay excise tax returns unless a waiver has been granted (RCW 82.32.080). Failure to pay the excise tax returns electronically may result in a penalty.
Excise taxes (37%) paid to Liquor and Cannabis Board
Revenue is not accepting tax payments for the LCB. Marijuana excise taxes due must be paid to LCB.
To stay up to date on the development of marijuana licenses including producer, processor, retailer, transportation, research and cooperative registrations, join the LCB listserv.