Some purchases of medical cannabis in Washington State will no longer be subject to the state's 37% 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 cannabis 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.
Cannabis 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.
Read more at marijuanamoment.net