H-0481.2

HOUSE BILL 1414


State of Washington	64th Legislature	2015 Regular Session

By Representatives Moscoso, Condotta, Wylie, Holy, and Reykdal

Read first time 01/20/15. Referred to Committee on Commerce & Gaming.

AN ACT Relating to exempting marijuana producers from taxation for sales to other producers of marijuana seeds and cloned marijuana plants; and amending RCW 69.50.535.

(1)(a) Except as provided under (b) of this subsection, there is levied and collected a marijuana excise tax equal to twenty-five percent of the selling price on each wholesale sale in this state of marijuana by a licensed marijuana producer to a licensed marijuana processor or another licensed marijuana producer. This tax is the obligation of the licensed marijuana producer.

(b) Sales of marijuana seeds and live, cloned, nonflowering, marijuana plants between producers, as authorized under RCW 69.50.325(1), are not subject to taxation. For the purposes of this subsection (1)(b), "nonflowering marijuana plants" means those plants that do not include the presence of developing flowers or buds, pollen, trichomes, or THC crystals.

(2) There is levied and collected a marijuana excise tax equal to twenty-five percent of the selling price on each wholesale sale in this state of marijuana concentrates, useable marijuana, and marijuana-infused products by a licensed marijuana processor to a licensed marijuana retailer. This tax is the obligation of the licensed marijuana processor.

(3) There is levied and collected a marijuana excise tax equal to twenty-five percent of the selling price on each retail sale in this state of marijuana concentrates, useable marijuana, and marijuana-infused products. This tax is the obligation of the licensed marijuana retailer, is separate and in addition to general state and local sales and use taxes that apply to retail sales of tangible personal property, and is part of the total retail price to which general state and local sales and use taxes apply.

(4) All revenues collected from the marijuana excise taxes imposed under subsections (1) through (3) of this section shall be deposited each day in a depository approved by the state treasurer and transferred to the state treasurer to be credited to the dedicated marijuana fund.

(5) The state liquor control board shall regularly review the tax levels established under this section and make recommendations to the legislature as appropriate regarding adjustments that would further the goal of discouraging use while undercutting illegal market prices.