Last week, the Washington State Liquor and Cannabis Board (LCB) approved a pair of rule changes that will impact how cannabis is taxed and tested in the state.
The rulemaking action concerning taxation is further along in the process than the one concerning testing. It regards changes to the excise tax levied on medical marijuana.
Cannabis products sold in the state are subject to a 37% excise tax in addition to other state and local sales taxes. The new rules would remove that tax for approved medical cannabis patients who buy from specific dispensaries. These changes are a direct result of Substituted House Bill 1453, which became law earlier this year.
To qualify for the excise tax exemption, three criteria must be met. The purchase must be made by a qualifying patient, or a designated provider, with a card from the state Department of Health; the purchase must be made at a licensed dispensary with a medical endorsement; and the product purchased must be usable cannabis specified by the state code.
Essentially, medical marijuana patients buying cannabis from medically endorsed dispensaries would be eligible for the exemption. Of Spokane County's 33 licensed dispensaries, 18 are medically endorsed.
These changes went into effect on June 6, but formal language on the rule issued by the LCB has not yet gone into effect. The exemption is set to last through June 2029. A public comment period regarding the changes is open through Aug. 28.
The second rulemaking action taken by the LCB last week relates to regulation of cannabis testing labs.
Authority to regulate quality standards and accreditation of cannabis testing labs was originally given to the LCB. A 2019 bill transferred that responsibility to the Department of Ecology, with the LCB playing a smaller role. A subsequent bill in 2022 once again moved responsibility, this time to the Washington State Department of Agriculture.
Under current state law, Agriculture will take responsibility for quality standards and accreditation. The LCB's rulemaking action proposes several changes to the wording of state code to accommodate this shift in responsibility.
The LCB's most recent rulemaking on this issue is a "Preproposal Statement of Inquiry," meaning it is not a final change. A public comment period on these proposed changes is open and runs through Aug. 16.
