Northwest Update: Washington

Still Taxed to Death

For the past decade, Washington cannabis businesses have endured the highest cannabis taxes in legal cannabis, a 37% excise tax on retail sales, in addition to local sales taxes, which are 10% on average. Couple that with business and occupation taxes on gross receipts and retails are “looking at close to 50% tax on the point of sale,” says Aaron Pickus, a spokesperson for the Washington CannaBusiness Association.

“We have the highest tax in the world.”

The possibility of federal declassification of cannabis would eliminate the 280E expenses for Washington operators, but there has been very little hope for tax relief at the state level, Pickus says.

On the Horizon

The ongoing battle to allow access to out-of-state capital has been gaining ground in the House and Senate, but has not been passed into law, Pickus says.

The Washington State Liquor and Cannabis Board has been deliberating several changes to regulations for years, such as a change to label requirements that would clarify information about products to consumers. Advocates are hoping to see these changes soon.

“We’re hoping they can be resolved in a way that makes sense,” Pickus says.

A recent change to the state’s cannabis system is eliminating the taxes on medical cannabis, compliant with Department of Health standards, purchased by qualified patients from certified medical cannabis retailers.