Some purchases of medical marijuana in Washington State will no longer be subject to the state’s 37 percent cannabis tax under a new law taking effect on Thursday. The exemption, signed into law in March by Gov. Jay Inslee (D), applies specifically to products that have been certified to higher testing standards than typical state-legal products.
Medical marijuana cardholders were already eligible for exemptions from Washington’s sales and use taxes on cannabis, but they were not exempt from the state’s excise tax, one of the highest in the country.
The bill, sponsored by Rep. Sharon Wylie (D) and two other Democrats allows state-registered patients and caregivers to avoid the tax when purchasing products that are compliant with Department of Health (DOH) testing standards, which are more rigorous than typical state cannabis standards. Manufacturers in the state are required to submit all medical and adult-use products to labs for testing, but producers can voluntarily have additional testing done—to screen for heavy metals, for example—that isn’t otherwise required.
Marijuana that passes the additional testing can be labeled with a DOH-developed logo, which now also serves as an indication that the product is tax-free for patients and caretakers.
Many states with both adult-use and medical marijuana already exempt patients from taxes.
Washington’s tax break is only temporary. As written, the new law is set to expire on June 30, 2029. A report by the Joint Legislative Audit and Review Committee on the revenue impacts of the change is due in 2028.
One of the bill’s co-sponsors, Rep. Shelley Kloba (D) also sponsored a cannabis homegrow bill this session—the latest in a series of such measures introduced over the past several years—but the proposal ultimately died in committee. If passed, HB 2194 would have allowed adults 21 and older to grow up to four plants per person, with no more than 10 allowed per household. Home cultivation of marijuana without a medical marijuana card remains a felony in the state.
Kloba told Marijuana Momentthat she’s co mmitted to continued advocacy for the policy change and plans to introduce yet another homegrow measure next year.
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