BILL REQ. #: H-3851.1
State of Washington | 63rd Legislature | 2014 Regular Session |
READ FIRST TIME 02/03/14.
AN ACT Relating to providing tax relief to qualifying patients for purchases of marijuana for medical use; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating a new section; providing an effective date; and providing an expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 (1) The legislature finds marijuana use for
qualifying patients is a valid and necessary option health care
professionals may recommend for their patients. The legislature
further finds that although there is a distinction between recreational
and medical use of marijuana, the changing environment for recreational
marijuana use in Washington will also affect qualifying patients. The
legislature further finds that while recognizing the difference between
recreational and medical use of marijuana, it is also imperative to
distinguish that the authorization for medical use of marijuana is
different from a valid prescription provided by a doctor to a patient.
The legislature further finds the authorization for medical use of
marijuana is unlike over-the-counter medications that require no
oversight by a health care professional. The legislature further finds
that due to the unique characterization of authorizations for medical
use of marijuana, the policy of providing a tax preference benefit for
patients using an authorization should in no way be construed as
precedence for changes in the treatment of prescription medications or
over-the-counter medications. Therefore, the legislature intends to
provide qualifying patients a retail sale and use tax exemption on
purchases of marijuana for medical use when authorized by a health care
professional.
(2)(a) This subsection is the tax preference performance statement
for the retail sale and use tax exemption for marijuana purchased by
qualifying patients provided in section 2 of this act. The performance
statement is only intended to be used for subsequent evaluation of the
tax preference. It is not intended to create a private right of action
by any party or be used to determine eligibility for preferential tax
treatment.
(b) The legislature categorizes the tax preference as one intended
to accomplish the general purposes indicated in RCW 82.32.808(2)(e).
(c) It is the legislature's specific public policy objective to
provide qualifying patients a retail sale and use tax exemption on
purchases of marijuana for medical use when authorized by a health care
professional.
(d) To measure the effectiveness of the exemption provided in this
act in achieving the specific public policy objective described in (c)
of this subsection, the joint legislative audit and review committee
must evaluate the actual fiscal impact of the sale and use tax
exemption in this legislation compared to the estimated impact in the
fiscal note for this legislation.
NEW SECTION. Sec. 2 A new section is added to chapter 82.08 RCW
to read as follows:
(1) Subject to the conditions and limitations provided in this
section, the tax levied by RCW 82.08.020 does not apply to the sales of
usable marijuana or marijuana-infused products for qualifying patients
or their designated provider.
(2) The exemption authorized in this section only applies to
purchases made from marijuana retail outlets authorized under chapter
69.50 RCW. Retail outlets that sell sales tax exempt usable marijuana
or marijuana-infused products are required to file their tax return
electronically with the department.
(3) Each marijuana retail outlet making exempt sales is required to
maintain records of qualifying patient authorizations provided by the
purchaser.
(4) For sellers who electronically file their taxes, the department
must provide a separate tax reporting line for exemption amounts
claimed under this section.
(5) The definitions in this subsection apply throughout this
section.
(a) "Designated provider" and "qualifying patient" have the same
meanings as provided in RCW 69.51A.010.
(b) "Usable marijuana" has the same meaning as provided in RCW
69.50.101.
(c) "Marijuana-infused product" has the same meaning as provided in
RCW 69.50.101.
NEW SECTION. Sec. 3 A new section is added to chapter 82.12 RCW
to read as follows:
(1) The provisions of this chapter do not apply to the use of
usable marijuana or marijuana-infused products by a qualifying patient
or their designated provider from an authorized marijuana retail outlet
under chapter 69.50 RCW.
(2) The definitions, conditions, and limitations in section 2 of
this act apply to this section.
NEW SECTION. Sec. 4 This act takes effect July 1, 2014.
NEW SECTION. Sec. 5 This act expires July 1, 2024.