Washington Tax Decisions

A non-profit, collective medical garden appeals a ruling that it must collect retail sales tax when it sells medical marijuana to patients who present written authorization from a health care professional that the patient may benefit from the medical use of cannabis. Because the authorization is not a prescription, the transfer of medical marijuana is not exempt from retail sales tax, and we deny the petition.

Two affiliated limited liability companies, Taxpayer A and Taxpayer B, operate two restaurants. Taxpayers protest the retail sales tax and retailing business and occupation (B&O) tax assessed by the Department. Taxpayers contend that its records do not accurately reflect (1) the amount of retail sales tax actually collected from their customers and (2) the amount of Taxpayers’ actual gross proceeds of sales. Taxpayers also contend that they are entitled to a larger cash and trade discount deduction than allowed by the Department. We [deny] Taxpayer A’s petition. We deny Taxpayer B’s petition.

The Taxpayer, an [out-of-state] manufacturer and wholesaler of prefabricated buildings, protests the assessment of wholesaling B&O tax on sales made to Washington State customers.