A legislative proposal “providing a tax exemption for medical cannabis patients” has been passed by Washington’s full legislature.
By a vote of 82 to 14 in the House of Representatives and 36 to 13 in the Senate, House Bill 1453 has received final approval through the legislature and will soon be sent to Governor Jay Inslee.
The proposed law “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.”
Washington’s 37% marijuana excise tax is the highest in the country. It’s been a sore spot for many medical marijuana patients, who paid no taxes on their medicine prior to a 2015 law that combined the medical marijuana market with the recreational marijuana market (approved by voters in 2012).
House Bill 1453 states that:
Each seller making exempt sales must maintain information establishing eligibility for the exemption in the form and manner required by the Washington State Liquor and Cannabis Board (LCB). The LCB must provide a separate tax reporting line on the excise tax form for exemption amounts claimed. The tax preference is exempt from the 10-year expiration date for new tax preferences and the requirement to include a tax preference performance statement.
The bill would take effect 90 days after adjournment of the legislative session.
If Governor Inslee were to veto the measure – which seems unlikely given it was championed by members of his own party – it may not matter, given it was passed with more than the 2/3rds required to override a veto.
