marijuana taxes tax
Marijuana Business News

Marijuana Taxes in Washington Could Get Lowered

marijuana taxes tax

When Washington rolled out legal recreational marijuana sales last year, a lot of customers got sticker shock. Some of my friends were reporting grams costing $25 and higher. A lot of that was due to the fact that there weren’t many producers operating at the time, so supplies were very low. However, another big contributing factor is taxes. As supplies flooded the market, prices dropped, but they are still around $15 per gram due to Washington’s high tax rate on marijuana. It sounds like there may be some tax relief on the way. Per Marijuana Business Daily:

Washington State recreational marijuana shops have been struggling underneath a heavy tax burden, but state lawmakers could soon deliver some relief – in stages, at least.

A proposed bill being considered by policymakers would reduce the current excise tax structure – 25 percent each time cannabis changes hands, from producer to processor to retailer – to a single tax paid by consumers. According to The Seattle Times, the suggested change would institute a 37% tax, and downgrade that to 30% in July 2017, and then 25% in 2019.

Sales tax would still be collected as well.

The tax rate would be a tremendous boost to the profit margins for businesses. Consumers would carry a heavier burden of the taxes on marijuana, which sounds harsh at face value, but it would result in a cheaper end product so it works out on the consumers end. Businesses would still have to deal with 280e provisions, which dramatically cut into profit margins, but at least they would pay less taxes overall. Thoughts?

  • Sarijuana

    That still seems overly greedy.

    • Ron

      Just what I was thinking.

    • CalicoRock

      Yeah, i agree. It’s become so greedy, and back-stabbing I’m leaving Washington as soon as I return from Southern Europe later this spring.

  • OrCoastTheo

    This is encouraging. Hopefully Oregon will follow suit. Marijuana tax should not be expected to fill the coffers of municipalities and it does not justify a sin tax assessment.

  • Smoke Prone

    I think they would make most of the sales tax they wanted anyway.

  • Shiftless Pilgrim

    How about this, WA state lets retailers act like retailers of any other product.
    Within a couple weeks of the 502 stores starting to open, the weed was scarce and expensive on the shelves and very few stores open, I became frustrated and went and got a script for MMJ. The difference was night and day, cannabis was readily available, in a multitude of forms, and the prices were astoundingly reasonable. And here we go, at the MMJ dispensaries you can see and smell the product, they have samples and real specials, and some have swag like t-shirts for sale to help foster loyalty.
    The 502 laws have got to be amended to ease up on the taxes, but also free up the retailers and the consumers.

    • CalicoRock

      ” I became frustrated and went and got a script for MMJ. The difference was night and day, cannabis was readily available, in a multitude of forms, and the prices were astoundingly reasonable”
      This could have easily have been written by an anti-medical marijuana dispensary lobbyist. Let me get this straight. You obtained a new Washington medical marijuana authorization simply because you balked at paying 502 retail store prices ? I don’t believe you.

  • Every tax, every regulation comes with an army of bureaucrats and behind that an army (with guns) of enforcers.

    No more taxed or regulated than tomatoes.

  • Silverado

    Wow…this makes a LOT of financial sense! Too bad this is Washington state that’s run by DemocRATS that only know how to tax and spend so THAT WILL NEVER HAPPEN. Just like the Republicans when they come into office though here in Lib Land that doesn’t happen very often. The Dem’s OWN this place. Anyway, this will be a NO-GO because it would require some common sense from Olympia. And they’ve been out of that longer than they’ve been out of more money for schools (that’s an inside joke as the State Supreme Court recently ruled the state has been short changing education funding for about as long as they were fighting cannabis and ordered them to REMEDY that problem and fully fund education. The state’s response? With what? We want to spend it on everything else…) Although I STILL WONDER why this state is allowed to keep taxing a Schedule 1 substance which has been against federal law since about forever. And I’m sure Patty & Maria (Murray & Cantwell) will have nothing to say about this….either. (What DO those two do?) But that’s one of the more puzzling aspects of legal cannabis in this state though one could add this is most likely due to the state’s GREED and the incompetence of this whole recreational…scheme and those running it. Anyway here’s how NOT to do “legalization”. And if you want it done right BEG, BORROW OR STEAL a free market Libertarian type as they seem a little more market orientated than our status-quo tax happy politicos.

    Go Seahawks!!!
    (Now if they could run cannabis legalization here like they run the Seahawks this really would be the “promised land”…)

    • God loves Liberals :-D

      You’re a total cunt. Move to Arkansas.


      • Silverado

        I’m surprised you can spell such a complex word there, Ace. But those two (Patty Murray and Maria Whats-Her-Name) are already in DC and boy did you call them right!! Thanks for your effort…

  • firetheliberals

    I went to a legal weed store in bellevue at christmas. 35 to 52 a gram for weed promoted as designer grade..bought nothing..
    Ridiculous, mmj in issaquah is 12 to 15 bucks a gram..and you can smell prepackaged stuff.

    The socialists in charge definitely screwed up this market.. they should have adopted the colorado concept and let mmj shops start with legal without the exorbitant taxes..

    • CalicoRock

      Somethings stinks. Colorado’s MMJ patient cannabis sales have nose-dived into the ditch. Have they moved on to friendlier medical environs, (Nevada for example)? Or, returned to prescription medication ? Colorado state officials are stumped. It’s not “Socialist’s” that concern me, it’s money grubbing capitalist’s, who view the very sickest among us as competitor’s. Washington should be learning from this, not trying to emulate it.

  • CalicoRock

    I encourage all Washington medical marijuana patients to contact their state representatives and senator’s to let them know that any plan allowing I-502 recreational grows should be scuttled unless they also allow for our medical dispensaries to remain open. Thank you.

  • Tim Bowles

    I hope they do lower taxes. It is way too high.I support the kohl-welles bill. Homegrow for everyone. We don’t need separate stores. Just give medical a discount and a section for tinctures.90% of medical people are no sicker than the other people. This is a fact.This change is coming so it will be good when it passes so the industry can stabalize & people can adjust and move on. I’m so sick of medical people whining about legal pot. They are to legalization like a bad child that grows up and trys to kill its parent. Once we have legal pot medical is largely irrelelevent. Herb is medicine for all people equal access for all people. Stop the marijuana apartheid.

    • Once we have legal pot taxed and regulated no more than tomatoes medical is largely irrelevant.


    • Doug G.

      Excuse me Tim but to get a medical card you have to have a medical problem in WA. I know more than one person it helps on a regular basis, just because you don’t have grand mal seizures, 2 brain tumors, ect. Like me don’t complain cause you can’t get a medical card…

      • Bill

        I to have serious medical problems my back is totally shot I’ve already had 5 operations and now they want to do another one too 3 more disc and my arthritis is so severe around my whole vertebraes is that when they did a bone scan they could not even see my disc’s at all and I know quite a few people and I have serious complications with their bodies to so I don’t understand why some people think we don’t need medical marijuana try living in our shoes for a day and C what you think

        • Bongstar420

          People die in agonizing pain refusing to consume cannabis. Its all about belief. You believe in it, they don’t. Also, it doesn’t work for everyone. Neither does Vicoden or Tylenol. I seriously doubt many MMJ users “need” this stuff like they say. Its more an inability to cope which the Cannabis alleviates, not the actual suffering. And any euphoriant can do that.

          The fact is hemp can do most of what MMJ is doing as far as relieving acutal pain goes. Guess why CBD isn’t really that common in MMJ at all. I’m sure it has nothing to do with the lack of euporia.

  • Bongstar420

    They didn’t tell you the grower has to have a processor’s license for harvest. Thats a 50% tax on the grower. They could just delete that one designation which would lower the total tax to about what Oregon’s will be. Oregon will have more chronic though because the tax is 100% on the grower and it is a flat tax at $560/lb. Basically, growing mids will be like growing any other cash crop as far as margins go because, really, who is going to pay more than $100 for an oz of mids?

  • MrMosley

    The prices are insane,why would anyone pay $700 for an ounce at a state run store when you can buy the same ounce for $200 on the street? This is why medical marijuana is going down cause the stores aren’t making what they thought. Maybe if the state would tax weed like everything else people mite go to the stores. I will never spend a dime at these big wig stores, not as long as they charge what they do. $75 for an eigth is just completly looney tunes bonkers crazy. Get your heads outta your butts Washington you can’t compete with the black market when your prices are almost triple.