Washington State Welcomes Marijuana Tax Revenue
- Sales Tax News
- Jul 14, 2014 | Gail Cole
The Washington State Liquor Control Board (WSLCB) issued 24 licenses to marijuana retailers on July 7, the first in the state. After filing a required manifest for transporting to retail locations and a mandatory 24-hour quarantine period, licensed retailers in Washington State are allowed to begin transporting marijuana products to their stores. Selling may then begin at the retailers’ discretion. A total of 334 retail marijuana licenses were allotted by the WSLCB.
According to the Seattle Times, sales of recreational marijuana were expected to bring in $148,256 in excise tax revenue during the first three days. That figure includes taxes from all aspects of the supply chain, except B&O taxes. WSCLB collects three excise taxes on marijuana sales, each at 25%. Earlier this summer, Governor Jay Inslee (D) signed a law prohibiting the marijuana industry from taking advantage of sales and use tax preferences available to other agricultural industries in the state.
Randy Simmons, marijuana project direct for the State of Washington, called the first few days “a good start.” He expects “volatile revenue figures” for the first couple of months. Once marijuana crops grown outdoors are harvested in late September or early October, the revenue flow should be more stable and predictable.
Marijuana tax revenue is already flowing into the state of Colorado, where retail sales of pot have been underway since the start of 2014.