SALT Report 3086 – The Washington State Liquor Control Board announced that they have adopted rules regarding the implementation of Initiative 502, which legalized the sale of marijuana and authorized the imposition of excise taxes and licensing fees. The new licensing and fee requirements apply to all marijuana producers, processors, and retailers in the State.
The Initiative created three new licenses each with an application fee of $250, and an annual renewal fee of $1,000. In addition, an excise tax of 25% will be imposed on every licensed retail sale of marijuana or marijuana infused product. Also, a 25% excise tax will be imposed on every sale between a licensed producer and a licensed processor, and on each sale between a licensed processor and a licensed retailer. This tax is considered part of the total retail price and is in addition to any other state and local sales and use taxes.
On November 18, 2013, the State will implement a 30-day registration period for all license types. The State is imposing a three month residency requirement for anyone applying for a license, this applies to members of partnerships, employee cooperatives, associations, nonprofit corporations, corporations and limited liability companies. In addition, all applicants must submit a signed attestation that they are current on any taxes owed to the Department of Revenue, either as an individual or as part of an entity in which they have an ownership interest.
All licensees will be required to submit a monthly report and any payments due for each type of license held, by the 20th day of the month for sales that occur in the previous month. All records associated with these sales must be maintained and made available for review for a three-year period.
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