Marijuana Tax Facts (Updated 10/28/14)
Cannabis tax revenues are shaping up to be a huge resource for states with a regulated, licensed cultivation, dispensary or processor program in place. Below is a list of the current and state tax laws by regulated state.
State Application and/or Registration Fee Taxes
Alaska – updated June, 2017
Chapter 61. Excise tax on marijuana
Sec. 43.61.010. Marijuana tax.
(a) An excise tax is imposed on the sale or transfer of marijuana from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility. Every marijuana cultivation facility shall pay an excise tax at the rate of $50 per ounce, or proportionate part thereof, on marijuana that is sold or transferred from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility.
(b) The department may exempt certain parts of the marijuana plant from the excise tax described in (a) of this section or may establish a rate lower than $50 per ounce for certain parts of the marijuana plant.
Sec. 43.61.020. Monthly Statement and Payments.
(a) Each marijuana cultivation facility shall send a statement by mail or electronically to the department on or before the last day of each calendar month. The statement must contain an account of the amount of marijuana sold or transferred to retail marijuana stores and marijuana product manufacturing facilities in the state during the preceding month, setting out
(1) the total number of ounces, including fractional ounces sold or transferred;
(2) the names and Alaska address of each buyer and transferee; and
(3) the weight of marijuana sold or transferred to the respective buyers or transferees.
(b) The marijuana cultivation facility shall pay monthly to the department, all taxes, computed at the rates prescribed in this chapter, on the respective total quantities of the marijuana sold or transferred during the preceding month. The monthly return shall be filed and the tax paid on or before the last day of each month to cover the preceding month.
Sec. 43.61.030. Administration and Enforcement of Tax.
(a) Delinquent payments under this chapter shall subject the marijuana cultivation facility to civil penalties under AS 43.05.220.
(b) If a marijuana cultivation facility fails to pay the tax to the state the marijuana cultivation facility’s registration may be revoked in accordance with procedures established under AS 17.38.090(a)(1).
*Sec. 3. The provisions of this Act are independent and severable, and, except where otherwise indicated in the text, shall supersede conflicting statutes, local charter, ordinance, or resolution, and other state and local provisions. If any provision of this Act, or the application thereof to any person or circumstance, is found to be invalid or unconstitutional, the remainder of this Act shall not be affected and shall be given effect to the fullest extent possible.
For more information visit: http://regulatemarijuanainalaska.org/full-initiative-text/
A dispensary will owe state, county, and any applicable local retail transaction privilege tax (Arizona’s version of sales tax) on receipts from its sales of medical marijuana and any other products it may sell to consumers. As with any retail business, the dispensary is allowed to pass the amount of the tax on to its customers. Note that there is no additional or special tax on medical marijuana at this time.
- $5,000 for an initial dispensary registration certificate.
- $1,000 for a renewal dispensary registration certificate.
- $2,500 to change the location of a dispensary or cultivation facility.
- $10 to amend, change, or replace a registry identification card.
5.6% sales tax
For more information visit: http://www.azdhs.gov/medicalmarijuana/faqs/index.php?pg=qualifying-patients
California – updated June, 2017
What is the California State Board of Equalization (BOE) policy regarding sales of medical marijuana?
The sale of medical marijuana has always been considered taxable. However, prior to October 2005, the BOE did not issue seller’s permits to sellers of property that could be considered illegal. A policy change was issued in October 2005 and the Board directed BOE staff to issue seller’s permits regardless of the fact that the property being sold may be illegal, or because the applicant for the permit did not indicate what products it sold.
What new policy changes effective in 2016 pertain to the BOE and medical marijuana?
Assembly Bill 266 (effective Jan. 1, 2016) enacted the Medical Marijuana Regulation and Safety Act, which established comprehensive statewide licensure and regulations for commercial medical cannabis activity. The Bureau of Medical Marijuana Regulation (Bureau) is responsible for administering the Medical Marijuana Regulation and Safety Act. Read the Bureau’s FAQs. Assembly Bill 266 also requires the BOE, in consultation with the California Department of Food and Agriculture, to adopt a system for reporting the movement of commercial cannabis and cannabis products throughout the distribution chain.
Assembly Bill 243 and Senate Bill 643 (effective Jan. 1 2016) provided additional framework for the Medical Marijuana Regulation and Safety Act. Read the full bills and the BOE’s legislative analyses for more information.
How many dispensaries are there in California?
Through June 30, 2016, 1,023 publicly disclosed medical cannabis sellers registered with the BOE filed returns and remitted sales and use tax to the BOE.
How much sales tax does the BOE collect from medical marijuana businesses?
Through June 30, 2016, $575,021,347 taxable sales of marijuana were reported to the BOE, and $50,507,006 was remitted in sales and use tax.
Where does the sales tax levied on marijuana sellers go?
The sales tax for medical marijuana revenue goes to the state’s General Fund as well as cities, counties, and other local jurisdictions where the sale was made.
Are these tax revenues tied to any specific programs in the state budget?
No. The tax from the sale of medical marijuana is treated the same as the tax received from the sale of all tangible personal property.
When the excise and cultivator taxes from the Adult Use of Marijuana Act (Proposition 64, 2016) are collected starting in 2018, those revenues will fund:
Reimbursement for the BOE, Department of Consumer Affairs, Department of Food and Agriculture, Department of Public Health, Department of Fish and Wildlife, Department of Water Resources, Department of Pesticide Regulation, Controller, State Auditor, Legislative Analysts Office, and the Divisions of Labor Standards and Enforcement and Occupational Safety and Health within the Department of Industrial Relations.
$10 million grant for a public university to research and evaluate the implementation and effects of the Act and make recommendations to the legislature and/or governor as appropriate to possibly amend the act.
$3 million to the Highway Patrol
$10 million to GOBiz
$2 million to UC San Diego
The remaining excise and cultivation tax revenues will be allocated:
60% to the Youth Education, Prevention, Early Intervention and Treatment Account
20% to the Environmental Restoration and Protection Account
20% to State and Local Government Law Enforcement Account
For more information visit: http://www.boe.ca.gov/news/marijuana.htm
Colorado – Updated June, 2017
Colorado Ballot Measure – Proposition AA
The marijuana tax reports are based on actual revenue collected monthly as posted in the Colorado state accounting system. Taxes for the filing period are collected the month following the close of the reporting period. For example, taxes incurred in January are collected in February.
Beginning March 9, 2016 the marijuana tax data reporting format changed. The new formatted reports include total marijuana tax revenue, medical and retail marijuana 2.9% sales tax, and retail marijuana 10% special sales tax.
In order to release information publicly, some data are aggregated such that it prevents the identification of a specific taxpayer return. Some data are not releasable due to this confidentiality requirement.
For information about the distribution of marijuana tax collections, please see the Disposition of Marijuana Tax Revenue webpage.
For FY 2015-16 and in accordance with §39-28.8-305, C.R.S. the first $40 million of the Retail Marijuana Excise Tax revenue was distributed to the Colorado Department of Education’s Building Excellent Schools Today (BEST) program. Excise tax collections in excess of $40 million, $2.5 million for FY 2015-16, were transferred to the Public School Fund.
Information on marijuana tax cash fund appropriations can be found on the Marijuana Tax Cash Fund Appropriations and Actual Expenditures Report published by the Office of State Planning and Budgeting.
A retail marijuana store is required to add the tax imposed as a separate and distinct item, and when added, the tax constitutes a part of the total price of the retail marijuana or retail marijuana products purchased. A retail marijuana store is required to collect and remit the tax
to the department in the same manner as the state sales tax is collected and remitted to the department pursuant to current law.
Of the revenues collected pursuant to the 15% sales tax, 10% will be distributed to each local government in the state that has one or more retail marijuana stores within its boundaries. Each local government’s share of the revenues collected shall be apportioned according to the
percentage of retail marijuana and retail marijuana products sales tax revenues collected by the department in the local government as compared to the total retail marijuana and retail marijuana products sales tax collections that may be allocated to all local governments in the state. The remaining revenues shall be deposited in the marijuana cash fund and appropriated as directed by the general assembly.
Excise tax: Beginning January 1, 2014, the bill imposes a tax on the sale or transfer of unprocessed retail marijuana by a retail marijuana cultivation facility to a retail marijuana store, retail marijuana product manufacturing facility, or another retail marijuana cultivation facility. The amount of the tax is 15% of the average market rate of unprocessed retail marijuana statewide on the date that it is sold or transferred, as determined by the department, and the tax is imposed when a retail marijuana cultivation facility sells or transfers unprocessed retail
marijuana to a retail marijuana store, a retail marijuana product manufacturing facility or another retail marijuana cultivation facility.
On or after January 1, 2014, the general assembly is authorized to establish a rate that is lower than 15% of the average market rate by a bill enacted by the general assembly and signed into law by the governor.After establishing a tax rate that is lower that 15% the general assembly may increase the rate by bill enacted by the general assembly and signed-2- HB13-1318 into law by the governor, so long as the rate does not exceed 15%. An increase in the rate does not require additional voter approval.
The bill specifies that every retail marijuana cultivation facility is required to keep certain records regarding the sale or transfer of unprocessed retail marijuana and is required to collect and remit the tax to the department.As required by section 16 of article XVIII of the state constitution,the bill specifies that the first $40 million received and collected in payment of the excise tax on unprocessed retail marijuana shall be transferred to the public school capital construction assistance fund currently created in law. Any amount remaining after the transfer shall be transferred to the marijuana cash fund.
Revenue and spending limitations: The bill allows the state to collect and spend any revenues generated by the retail marijuana sales tax and retail marijuana excise tax as voter approved revenue changes.Submission of ballot questions by the secretary of state: The bill requires the secretary of state to submit a ballot question at the statewide election to be held in November 2013 asking the voters to:
Allow the general assembly to impose a retail marijuana sales tax at a rate not to exceed 15% of the sale of retail marijuana and retail marijuana products;
Allow the general assembly to impose a retail excise tax at a rate not to exceed 15% of the average market rate of unprocessed retail marijuana on unprocessed retail marijuana at the time when a retail marijuana cultivation facility sells or transfers retail marijuana to a retail marijuana product manufacturing facility, a retail marijuana store, or another retail marijuana cultivation facility;
Allow the general assembly to decrease or increase the rate of either tax without further voter approval so long as the rate does not exceed 15% for either tax; and! Allow any additional tax revenue to be collected and spent not withstanding any limitations in TABOR or any other
Marijuana cash fund: The bill changes the name of the existing medical marijuana license cash fund to the marijuana cash fund.The bill specifies that the sale of marijuana or marijuana products by a medical marijuana center to a consumer and the sale or transfer of unprocessed marijuana by a marijuana cultivation facility to a medical marijuana center are not subject to either tax. The department of revenue(department) is required to promulgate rules for the implementation of both taxes.
Shall State Taxes be increased by $70,000,000 annually in the first full fiscal year and by such amounts as are raised annually thereafter by imposing an excise tax of 15% when unprocessed retail marijuana is first sold or transferred by a retail marijuana cultivation facility with the first $40,000,000 of tax revenues being used for public school capital construction as required by the state Constitution, and by imposing an additional sales tax of 10% on the sale of retail marijuana and retail marijuana products with the tax revenues being used to fund the enforcement of regulations on the retail marijuana industry and other costs related to the implementation of the use and regulation of retail marijuana as approved by the voters, with the rate of either or both taxes being allowed to b decreased or increased without further voter approval so long as the rate of either tax does not exceed 15%, and with the resulting tax revenue being allowed to be collected and spent notwithstanding any limitations provided by law?
For more information visit:
Connecticut – Updated June, 2017
Marijuana and Controlled Substances Tax
PURPOSE: This Special Notice describes, and is intended to provide general information about, the tax on marijuana and controlled substances enacted by 1991 Conn. Pub. Acts 397.
EFFECTIVE DATE: Effective upon issuance and applicable to the purchase, acquisition, transportation or importation into Connecticut of marijuana or controlled substances in violation of any provision of Connecticut law on or after October 1, 1991.
STATUTORY AUTHORITY: 1991 Conn. Pub. Acts 397 [hereinafter, “the Act”].
IMPOSITION OF TAX: The tax is imposed on any marijuana or controlled substances that are purchased, acquired, transported or imported into Connecticut at the following rates:
$3.50 per gram (or portion thereof) of marijuana,
$200.00 per gram (or portion thereof) of a controlled substance that is sold by weight, and
$2,000.00 per each 50 dosage units (or portion thereof) of a controlled substance that is not sold by weight.
Persons in lawful possession of marijuana or controlled substances are not subject to the marijuana and controlled substances tax.
PERSON UPON WHOM TAX IS IMPOSED: The tax is due and payable immediately upon acquisition or possession in Connecticut by a dealer.
DEFINITIONS: As used in the Act:
marijuana means “marihuana” real or counterfeit, as defined in Conn. Gen. Stat. §21a-240 (29), that is held, possessed, transported, sold or offered for sale in violation of any provision of Connecticut law.
controlled substance means “controlled substance”, as defined in Conn. Gen. Stat. §21a-240 (9), that is held, possessed, transported, sold or offered for sale in violation of any provision of Connecticut law.
dealer means any person who, in violation of any provision of Connecticut law, manufactures, produces, ships, transports, or imports into Connecticut or in any manner acquires or possesses more than 42.5 grams of marijuana, or 7 or more grams of any controlled substance that is sold by weight, or 10 or more dosage units of any controlled substance that is not sold by weight.
PROOF OF PAYMENT OF TAX: Possession of any marijuana or controlled substance by a dealer is unlawful unless the marijuana and controlled substances tax has been paid. Payment of the tax is evidenced by a stamp that must be permanently affixed to a non-reusable container of the marijuana or controlled substance. The marijuana stamps are available in denominations of $10.00 and $500.00 and the controlled substances stamps are available in denominations of $200.00 or $10,000.00 and can be purchased from the Department upon payment of the full face value thereof. Each stamp may be used only once.
ADMINISTRATIVE REQUIREMENTS: Each dealer must keep complete and accurate records of all marijuana and controlled substances on which the tax is imposed, which records must be preserved for three years in such a manner as to insure their permanency and accessibility for inspection by the Department. Where a dealer cannot produce evidence that stamps were purchased to cover the receipt of any marijuana or controlled substances, it will be presumed that such marijuana or controlled substances were sold without having the proper stamps affixed.
INTEREST AND PENALTIES: For each tax deficiency assessed by the Department, a penalty of 10% of the deficiency or $50.00, whichever is greater, and interest at the rate of one and one-fourth percent per month or fraction thereof from the due date of the tax to the date of payment will be added to the amount of the tax deficiency. If the Department determines that the tax deficiency or any part thereof was due to a fraudulent intent to evade the tax, a penalty of 25% of the deficiency and interest at the rate of one and one-fourth percent per month from the due date of the tax to the date of payment will be added thereto. A penalty of 100% of the tax in addition to the tax imposed will be imposed on any dealer who violates any provision of the Act. In addition, any person who violates any provision of the Act will be fined not more than $10,000 or imprisoned not more than six years or both.
For more information visit:http://www.ct.gov/drs/cwp/view.asp?A=1514&Q=510080
Will be determined by department rule
Gross receipts tax if above $1.2 million in revenue
7.6 Application for operation of a compassion center. Applicants shall only be accepted during an open application period announced by the Department and shall include the following items:
7.6.1 a non-refundable application fee, made payable to the Division of Public Health, Medical Marijuana Program, in the amount of $5,000;
7.10 Expiration, termination, or renewal of a registration certificate authorizing operation of a compassion center.
7.10.1 Expiration: A compassion center’s registration shall expire two years after its registration certificate is issued. The compassion center may submit a renewal application at any time beginning 90 days prior to the expiration of its registration certificate. Such renewal application must be submitted a minimum of 30 days prior to the expiration of its registration certificate to avoid suspension of the certificate.
7.10.2 Renewal: The Department shall grant a compassion center’s renewal application within 30 days of its submission if the following conditions are all satisfied.
184.108.40.206 The compassion center submits materials required under Section 7.9 of these regulations, including a $40,000 fee, which shall be refunded if the renewal application is rejected;
For more information visit:
District of Columbia
$5,000 application fee for dispensaries and cultivators,
$3,000/year renewal fee;
$10,000/year fee for dispensaries;
$5,000/year fee for cultivators
6% sales tax
For more information visit: http://doh.dc.gov/sites/default/files/dc/sites/doh/publication/attachments/Rulemaking_for_MMP_2013.pdf
Currently a “grow your own” program
Fees will be determined by the department by rule, must cover costs
7% excise tax at wholesale level and 1% sales tax
For more information visit: http://www2.illinois.gov/gov/mcpp/Pages/Rules.aspx
$15,000 application fee,$14,000 refunded to applicants that aren’t chosen
5% sales tax and 7% meals and rooms taxon edible products
For more information visit: http://www.maine.gov/legis/lawlib/medmarij.html
The Marijuana Control Act of 2014
Medical marijuana can only be legally obtained from a licensed dispensary or directly from one of the 15 licensed medical marijuana growers.
Beginning June 1, 2016, the Commission may increase the number of licensed growers in order to meet demand and provide for patient access in “an affordable, accessible, secure, and efficient manner.
The legislation directs the Comptroller to develop regulations and licensing for four types of state-legal marijuana businesses — retail stores, cultivation facilities, marijuana product manufacturers, and testing facilities. Localities would have the right to regulate time, place, and manner, as well as provide input on licensing, which would be granted substantial weight. No more than one retailer for every 20,000 residents would be allowed, except that every county would have at least two retailers. Local governments could further restrict the number of marijuana businesses, as long as they were not completely prohibited.
The Marijuana Control Act of 2014 would impose an excise tax of $50 per ounce on the sale of marijuana by a cultivation facility, which would generate an estimated $91.3 million per year. The tax rate may be adjusted for inflation or deflation, based on the Consumer Price Index. The first $5 million of revenue raised annually would be directed towards drug addiction treatment and education.
For more information visit:
The health department proposed a $50,000 annual fee for dispensaries and $31,000 in fees for a two-stage application process.
Likely not taxed.
For more information visit:
For more information visit:
Montana – Updated June, 2017
State revenue officials are working on the roll-out of the latest medical marijuana program with a tax on the drug — the first of its kind in the state — which could increase the agency’s capacity for handling cash.
Legislators passed SB333 this spring, adding a number of regulations to the program. That includes a gross sales tax that providers will start putting on the books on July 1, the Billings Gazette reported Sunday (http://bit.ly/2qV3rJC).
The tax will be 4 percent of gross sales from July 1, 2017, to June 30, 2018. After that the tax will be 2 percent.
For the Montana Department of Revenue, much of the setup is no different from any other specialty tax.
NEW SECTION. Section 15. Tax on providers and marijuana-infused products providers. (1) There is a tax of 2% on a provider’s and marijuana-infused products provider’s gross sales that is payable four times a year.
(2) A provider or marijuana-infused products provider shall submit a quarterly report to the department listing the total dollar amount of sales from any registered premises, as defined in 50-46-302, operated by the provider or marijuana-infused products provider, including dispensaries. The report must be:
(a) made on forms prescribed by the department; and
(b) submitted within 15 days of the end of each calendar quarter.
(3) At the time the report is filed, the provider or marijuana-infused products provider shall submit a payment equal to 2% of the total dollar amount of sales.
(4) The department shall deposit the taxes paid under this section in the medical marijuana state special revenue account provided for in 50-46-345.
(5) If a provider or marijuana-infused products provider fails to file the required report on or before the date due, the tax becomes delinquent. The department shall:
(a) immediately determine as nearly as possible the gross sales of the provider or marijuana-infused products provider, using any reports or returns filed with a state or county officer or board under any law of this state and from any other information available;
(b) file a statement showing the estimated amount of sales;
(c) determine and assess the amount of tax due;
(d) provide notice to the provider or marijuana-infused products provider in the same manner as if the statement had been filed in time; and
(e) collect the tax due, along with penalty and interest as provided in 15-1-216.
For more information visit:
Will be determined by department rule:
Maximum fees for initial registrations range from $3,000 for a cultivation facility to $30,000 for a dispensary; maximum renewal fees range from $1,000 to $3,000.
6.85% to 8.1% state and local sales tax likely applies
For more information visit: https://www.leg.state.nv.us/Session/77th2013/Bills/SB/SB374_EN.pdf
Fees will be set by the health department; they must cover costs
No State Sales tax.
For more information visit: http://www.dhhs.state.nh.us/oos/tcp/
$20,000 dispensary fee each year, $2,000 for unsuccessful applicants
7% sales tax
For more information visit: http://www.state.nj.us/health/medicalmarijuana/atc_faqs.shtml
$1,000 application fee for producers, annual producer fee from $5,000-$30,000
Gross receipts tax (5.125% to 8.8675%) depending on location in state)
For more information visit:
What are the Rules for People Who Want to Be Part of the Industry of Producing or Dispensing Medical Marijuana?
Registered organizations or “RO’s” are entities that the state licenses to produce and dispense medical marijuana.
Can be for-profit or not-for-profit organizations
Must contract with an independent laboratory approved by the Commissioner of Health for product testing
Cannot be managed by or employ anyone, who comes in direct contact with the marijuana, who has been convicted of felony drug charge within 10 years (unless they received a certificate of relief or good conduct)
Growing must be done indoors (which may include a greenhouse) in a secure facility
The Commissioner will not license more than 5 RO’s, which can each operate 4 dispensaries (for a total of 20 dispensaries)
Commissioner can add more RO’s if s/he determines a need
DOH will issue regulations for RO’s, including regulation governing security and tracking
How Do I Become a Registered Organization (RO)?
To apply to be an RO, the organizations must meet a range of criteria, including that they:
Have sufficient facilities and land or a bond of $2 million
Can maintain good security
Has entered into a labor peace agreement
Able to comply with all state laws
In determining who can be an RO, the Commissioner should consider the public interest – including regional access
The fee for RO’s is to be determined by the Commissioner
Licenses are valid for 2 years and then must be renewed
Licenses can be immediately suspended of terminated if the RO is not adequately controlling diversion or otherwise violating the statute or regulations.
What are the fees for participating?
Fees for producers and dispensaries are to be determined by the Health Commissioner
How Will Medical Marijuana Be Taxed?
Medical marijuana is taxed through an excise tax, which means that the Registered Organization pays the tax directly to the state
The law established a medical marijuana trust fund – 100% of revenue is to be deposited there
Excise tax of 7% will be levied on gross receipts and paid by the Registered Organization 22.5% goes to county were the medical marijuana was produced
22.5% goes to county were the medical marijuana was dispensed
5% goes to Office of Alcohol and Substance Abuse Services for prevention, counseling and treatment services
5% goes to the Department Criminal Justice Services for discretionary grant program related to enforcement of the this title
For more information visit: http://www.compassionatecareny.org/medical-marijuana/
Measure 91 Pending Nov 2014 Ballot vote
Fees will be determined by Health Authority rule.
No State Sales Tax
For more information visit:http://ballotpedia.org/Oregon_Legalized_Marijuana_Initiative,_Measure_91_%282014%29,_Full_text_of_measure
$250 application fee, $5,000 registration Fee
Compassion center surcharge of 4%; 7% state sales tax
For more information visit: http://www.tax.ri.gov/regulations/other/CCS-01.pdf
$2,500 application fee, $20,000 or $30,000 annual fee
Likely not taxed.
For more information visit: http://www.leg.state.vt.us/jfo/reports/2012-02%20Medical%20Marijuana%20Fee%20and%20Tax%20Report.pdf
Authorizing the Production, Processing and Retailing of Recreational Marijuana
On November 6, 2012, Washington State voters passed Initiative 502 (I-502). The initiative makes it legal for businesses holding the appropriate marijuana license(s) to produce, process, or make retail sales of marijuana for recreational use.
The Liquor Control Board (LCB) approves, regulates, and enforces marijuana licenses. For information on these topics, see LCB’s I-502 web page.
Taxes on marijuana-related businesses
- Administered by the Liquor Control Board
The initiative establishes a 25 percent excise tax on marijuana producers, processors, and retailers. These taxes will be administered by LCB.
- Administered by the Department of Revenue
The business & occupation (B&O) tax applies to producers, processors, and retailers of marijuana and marijuana-infused products.
Retail sales tax applies to sales of marijuana and marijuana-infused products to consumers.
The amount subject to the B&O tax and retail sales tax is the “selling price” (RCW 82.08.010). The selling price can include, but is not limited to:
- Cost of goods sold.
- Markup, which may include:
- The 25% marijuana excise tax imposed on the producer.
- The 25% marijuana excise tax imposed on the processor.
- The 25% marijuana excise tax imposed on the retailer.
- Business expenses.
- Additional markup for desired profit.
Marijuana/marijuana-infused products are not food or prescription drugs
Whether sold for recreational or medical purposes, marijuana and marijuana-infused products are not considered food or food ingredients, nor are they considered prescription drugs since they cannot be legally prescribed. Therefore, these products do not qualify for the food or prescription drug retail sales tax exemptions. (See our Special Notice – Sales of Medical Cannabis Remain Subject to Sales Tax.)
Marijuana sales to non-resident
Marijuana sales to non-resident are subject to retail sales tax. Since marijuana sold in Washington cannot be legally transported outside of this state, the sales tax exemption under RCW 82.08.0273 does not apply. That exemption is limited to goods used outside of Washington State.
For more information visit: