By Washington state lawmakers “recently passed a bill that would exempt medical marijuana patients and designated providers from a 37% excise tax.” according to forbes.
Passage of the bill would eliminate what was characterized as “one of the highest tax rates levied on medical cannabis products.”
invoice, HB1453originally introduced last year.
According to the proposal's official legislative summary, the bill would require “a 37% discount on cannabis items for eligible patients and designated health care providers with authorization cards for the purchase of cannabis products bearing Department of Health (DOH) labels.” The purpose is to provide tax exemption. Compliant product and tested according to DOH regulations. ”
“Each retail sale of cannabis concentrates, usable cannabis, and cannabis-infused products in Washington is subject to and collected a cannabis excise tax equal to 37 percent of the sales price. It is separate from the general state and local sales and use taxes that apply to retail sales of personal property and is part of the total retail price to which general state and local sales and use taxes apply. It's not a club.'' “This tax must be reflected in licensed cannabis retailers’ price lists or posted shelf prices, as well as in advertising, including the prices of all cannabis products. All revenue collected from cannabis excise taxes. must be deposited into the cannabis-specific account on a daily basis.”
The summary continued as follows: “Eligible patients and designated health care providers who hold an authorization card will be exempt from the 37 percent cannabis excise tax on purchases of cannabis products labeled as Department of Health (DOH) compliant products. Tested in accordance with DOH regulations. Each seller conducting exempt sales must maintain information establishing exemption eligibility in the form and manner required by the Washington State Liquor and Cannabis Board (LCB). LCB must provide a separate tax declaration section on the consumption tax return for the amount claimed for exemption.”
Seattle law firm Harris Sliwoski provided more background. Commenting on the bill and its process through Washington, D.C., he said the 37% tax imposes an unnecessary burden on patients.
“On March 6, 2024, the Washington Senate passed HB 1453, which provides a 37% excise tax exemption for medical marijuana patients and designated providers. This bill currently awaits signature and executive action. “HB 1453, first introduced in 2023, seeks to harmonize the 37% excise tax on cannabis sales with the existing medical exemption from general sales and use taxes,” the law firm explained. . “Medical marijuana patients and healthcare professionals would face significant economic burdens if they were unfairly taxed in the same way as recreational consumers. First, medical marijuana is not a recreational or luxury product. It is a must-have for many people suffering from chronic pain, epilepsy, PTSD, and other conditions. In many cases, medical cannabis is the only effective treatment that helps them function and improve their quality of life. Medical cannabis patients and providers already have to jump through additional regulatory hoops to remain compliant with the LCB and DOH, and the imposition of additional taxes will only exacerbate this difficulty. Patients and healthcare providers follow strict rules and guidelines for accessing medications that recreational cannabis users and healthcare providers do not need, and further penalizing these medical patients and healthcare providers is It’s unfair.”
As the company noted, the 37% tax is even more burdensome given that medical marijuana is “already expensive and not covered by insurance or public health programs.”
“Add to this the recreational sales tax, and it becomes even more of a burden for many patients who are already struggling financially. , or may be forced to turn to recreational markets that do not have the same DOH requirements or compliance standards,” the company said. “Taxing medical cannabis patients the same as recreational consumers is a form of discrimination that undermines their health and well-being. It also undermines the principle of harm reduction, which is one of the cornerstones of medical cannabis legalization policy. I object.”
The bill will now go to Democratic Gov. Jay Inslee's desk. Harris Sliwoski said that if she signs it, the bill would go into effect 90 days after the current legislative session ends, providing medical marijuana patients and providers with much-needed drug tax credits. ” he said.
“Washington State Lawmakers have confirmed that medical marijuana should be treated as a drug, not a commodity, and should be exempt from the 37% excise tax, in addition to the current exemption from general and local sales and use taxes. “We have finally acknowledged this,” the company added.
