SALT Report 1910 – Washington voters overwhelmingly passed Initiative 502, a bill that allows the state to license and tax marijuana production and distribution. The Washington Liquor Control Board released a fact sheet detailing the state and local taxes and licensing requirements that will be imposed.
The initiative creates three new licenses for marijuana producers, processors, and retailers. The application process would be similar to those in place for liquor licenses. The types of licenses are as follows:
Marijuana Producer – Produces marijuana for sale at wholesale to marijuana processors and allows for production, possession, delivery, distribution
Marijuana Processor – Processes, packages, and labels marijuana and marijuana infused products for sale at wholesale to marijuana retailers and allows for processing, packaging, possession, delivery, distribution
Marijuana Retailer – Allows for the sale of useable marijuana and marijuana infused products at retail outlets regulated by the WSLCB
The application fee for each license would be $250 and $1,000 for the annual renewal.
The initiative creates three new excise taxes that will be collected by the WSLCB.
Producer tax – an excise tax equal to 25% of the selling price will be imposed on every sale between a licensed producer and a licensed processor.
Processor tax – an excise tax equal to 25% of the selling price will be imposed on every sale of usable marijuana or marijuana infused products from a licensed processor to a licensed retailer.
Retailer tax – an excise tax equal to 25% of the selling price will be imposed on every licensed retail sale of usable marijuana or marijuana infused products. This tax is in addition to any applicable general, state, or local sales and use taxes, and will be considered part of the total retail price.
The WSLCB has until December 1, 2013 to finalize any rules for implementation.
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