marijuana.jpg
The Washington Department of Revenue has launched a statewide effort to collect sales tax from medical marijuana dispensaries. (AP Photo)

State tries to collect pot sales tax

December 14, 2010 @ 2:42 pm (Updated: 1:37 pm - 3/28/11 )

By TIM HAECK
KIRO Radio
Listen to Tim's report

The Washington Department of Revenue has launched a statewide effort to collect sales tax from medical marijuana dispensaries.

Spokesman Mike Gowrylow says the department mailed letters to 90 dispensaries and related organizations on Friday, insisting that medical marijuana is not exempt from state sales tax and dispensaries must collect that money and turn it over to the state.

"The providers are selling marijuana and they need to be charging sales tax on those sales. It's not a prescription drug that's exempt from the sales tax," Gowrylow told KIRO Radio.

The letter also warned them that dispensaries must also pay the state business and occupation tax.

It's not known how many people are selling medical marijuana and how much tax money those businesses might generate.

Voters approved medical marijuana in Washington in 1998, but the law does not allow for marijuana sales. Instead, patients must grow marijuana themselves or designate a caregiver to grow it for them.

Because growing marijuana can be expensive and difficult, some patients have formed collectives to grow pot together, contributing dues to help pay for costs. In the Seattle area, some of the collectives have dispensaries that serve thousands of members.

The law is silent on such collectives, and prosecutors around the state have taken differing views on whether they're permissible. The state Health Department maintains they're not.

The Revenue Department's letter said medical marijuana isn't exempt from the sales tax _ as prescription medications are _ because it can't be prescribed under state and federal law. Washington's law instead requires an "authorization" from a medical professional.

Chris, one of the co-owners of C & J's Helpful Meds in Leavenworth, says all transactions are done as donations and they operate as a non-profit organization.

"We don't make any money really, doing this," Chris told CBS Radio.

"We're not involved in determining whether selling medical marijuana is illegal or not," Gowrylow said. "Our job is to administer state tax codes. If you're selling medical marijuana, it's a retail sale."

The Associated Press contributed to this report.

More Local News
Top Stories

  • Devastation
    Oklahoma City tornado kills at least 50, dozens of kids missing

  • Twister Terror
    Gallery: Deadly Oklahoma tornado

  • Messiest
    New lane restrictions mean Mercer Street is tough to travel during afternoon commutes
MyNorthwest.com - Purpose of Comments statement
Bonneville Media encourages site users to express their opinions by posting comments. Our goal is to maintain a civil dialogue in which readers feel comfortable. At times, the comments can descend to personal attacks. Please do not engage in such behavior. We encourage your thoughtful comments which: have a positive and constructive tone, are on topic, are respectful toward others and their opinions. Bonneville reserves the right to remove comments which do not conform to these criteria.

Comments (23)


  • Add A Comment

  • Chris Halliday wrote...
    And it took this long for tax collectors to catch a clue?
    December 14, 2010 2:07 pm
    How long has medical pot been legal in this state? Guess what you inept tax collectors. You should be fired for lack of performance on the job. You have cost the state untold millions with your idiousy. And now you want payback? All that tax money you missed should be water under the bridge. There is no way you will be able to figure out how much money is supposedly owed by these growers. You have hopefully learned your lesson and it is time to move on. Get an accurate account of all the parties involved, and tax the chit out of them from here on out.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Goody wrote...
    Okay, what's next? Sex?
    December 14, 2010 2:15 pm
    How are you going to tax sex? Per act? Per time? Old people take longer.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • roomtemp wrote...
    If you pay your taxes...
    December 14, 2010 2:21 pm
    Are you protected from federal prosecution?

    Thought not...

    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • C"mon Man wrote...
    Treat the sick
    December 14, 2010 2:29 pm
    Don't tax them more.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • MG345 wrote...
    Remember
    December 14, 2010 2:32 pm
    the good ole' days when a 20 sack cost 20 dollars, not $21.63. Thanks Washington. Now, back to my nap.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • HPD 5-0 wrote...
    Taxing marijuana?
    December 14, 2010 2:40 pm
    What?...why?...when?...how?...oh, man...come on dude...I can't even add or subtract due to this stuff and you want me to pay taxes. Bummer...anyone got a sandwich?
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • DEMS4BTRLIF wrote...
    Their u go
    December 14, 2010 2:44 pm
    all u pot smokers, as soon as the state gets a taste of those tax dollars it will be coming to store front near u. ENJOY
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • myopinion wrote...
    GOODY
    December 14, 2010 2:47 pm
    WELL, IT WILL BE BY THE ACT, A BJ WILL COST MORE THAN SAY JUST GETTING YOUR NIPPLE TOUCHED, FOR THE ACTUAL ACT OF INTERCOURSE YOU WILL HAVE TO SEND THE STATE A VIDEO SO THAT THEY CAN THEN DETERMINE WHAT THE "SLIDING" TAX SCALE WILL BE, THAT IS A GAY JOKE, AND i CAN BECAUSE I AM ONE
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • RnD_Fan wrote...
    I would use this as my defence.
    December 14, 2010 3:13 pm
    Hey FEDS!....

    I can't be prosecuted, the state is aware of my actions

    The state is collecting Tax.

    So I must be doing everything legally.

    If you want to prosecute someone, prosecute WA State!

    Can't hurt, might help.

    Now all we need is an 'electronic' joint, that instead of nicotine, dishes out a pleasant dose of THC!

    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • Chris Halliday wrote...
    @my
    December 14, 2010 3:16 pm
    Oh man! No wonder you said all that trash about me being gay. I was right. You wish I was one. I better stop now. I'm turning you on too much.
    { "Thumbs Up":"1","Thumbs Down":"-1" }
  • { "Thumbs Up":"1","Thumbs Down":"-1" }