What are my Marijuana Excise Tax Obligations?
Per RCW 69.50.535 and WAC 314-55-089, all licensees are required to remit to the Washington State Liquor Control Board (WSLCB) an excise tax of 25 percent on all taxable sales of marijuana, marijuana concentrates, useable marijuana, and marijuana-infused products.
Exemptions to the above where the 25 percent excise tax is not applied:
- Transfers from licensed producers to licensed processors when they are the same entity. For example, Producer A is also Processor A. The transfer from production to processing is not a sale because it is the same entity.
- Processor to processor sales, regardless of entity. House Bill 2304 authorized processor to processor sales but did not include any taxation.
When can I pay my excise tax?
The reporting period closes on the last day of the calendar month. You can confirm and pay your excise tax obligation any time after that.
When is my excise tax due?
Confirmation and payment of excise taxes are due no later than the 20th day of each month for the previous month’s activity. (For example: taxes for the July reporting period are due no later than August 20th.)
How do I pay my excise tax?
WSLCB will accept cash, check, cashier’s check, or money order as payment of your excise tax obligation. Cash payments will be accepted in person by appointment only at our Olympia HQ location. Please call 360-664-1789 to schedule a payment appointment.
Can I mail my tax payment to the WSLCB?
Payment can be mailed to:
Attention: Accounts Receivable
PO Box 43085
Olympia, WA 98504
Please write your license number on your payment. Also include a copy of your tax obligation report and ensure that your taxes are properly filed within the LCB Traceability System prior to submitting payment.
Can I pay at Department of Revenue?
No. The Department of Revenue will not accept payments for marijuana excise tax at this time.
What should I do if I have a discrepancy in sales data or excise tax amount due?
Contact the WSLCB Marijuana Tax Unit at email@example.com or 360-664-1789. We are here to assist you with any discrepancies or irregularities.
What happens if I do not pay my taxes by the required deadline?
Per WAC 314-55-092, a penalty of 2 percent per month will be assessed on any past due payments. Failure to make a report and/or pay the license taxes and/or penalties in the manner and dates outlined in WAC 314-55-089 will be sufficient grounds for the board to suspend or revoke a marijuana license.
Can I charge the purchaser for the excise tax?
The excise tax is the obligation of the seller. Any of this tax obligation intended to be passed on to the purchaser should be included in the sale price of the product.