A measure “providing a tax exemption for medical cannabis patients” has been given approval by Washington’s full legislature, although one final vote is needed before it can be sent to Governor Inslee.
House Bill 1453 provides “a permanent tax exemption from the 37 percent cannabis excise tax for qualifying patients and designated providers with a recognition card on purchases of cannabis products that are labeled as Department of Health (DOH)-compliant product and tested in accordance with the DOH’s rules.” The proposal was passed today by the Senate, 36 to 13, with the vote coming three weeks after it passed the House 85 to 12.
Given the Senate amended the bill so that it sunsets in 2029 (aka expires unless renewed), the House will need to give the measure one final vote of concurrence before it can be sent to Governor Jay Inslee.
Washington legalized medical marijuana in 1998. The medicine remained tax free until after the state legalized recreational marijuana in 2012, with lawmakers melding the two systems together forcing patients to pay the 37% marijuana excise tax.
Of the 23 states that have legalized recreational marijuana sales, none have a higher tax rate than Washington’s 37%.
If the measure is signed into law or allowed to become law without a signature, it will take effect 90 days after adjournment of the legislative session.
