The state appears to have a very different view of dispensaries than it did only a few years ago:
The state has begun an effort to collect sales tax from medical marijuana dispensaries, The Associated Press reports.
State officials, facing a $4.7 billion deficit for 2011-13 and needing about a half-billion dollars in extra cuts to the current budget, are looking for money any place they can find it.
The Washington Department of Revenue launched the statewide medical marijuana effort. Spokesman Mike Gowrylow told The AP the department mailed letters to 90 dispensaries and related organizations on Friday, saying medical marijuana is not exempt from state sales tax and dispensaries must collect that money and turn it over to the state. The letter also warned them that dispensaries must also pay the state business and occupation tax.
While some dispensary owners around the state actually boast about their willingness to pay taxes (to show that they can be just as responsible a corporate citizen as any other business owner), they’re still taking a legal risk that other business owners don’t by opening up their operations to government scrutiny. Dispensaries still operate in a very gray area of Washington’s medical marijuana law. This move could lead to greater visibility in the community and higher risks with local officials.
It’s about time we finally fix the law and let these businesses operate in the open. Then tax away.
This is a good thing. Once a stream of revenue becomes available, the state will be loathe to end it without a lot of political pressure to do so. Since the tide seems to be going the other direction in terms of legalization, the risk that a public outcry of the intensity required to stop the flow of tax money seems low.
I don’t think the concept of dispensaries is even in the current WA state medical marijuana law. There is the concept of designated providers, but not of buying and selling. So I’m not sure how the state can collect sales tax when, strictly speaking, nothing is sold. This is a good reason to pass a dispensary law.
Didn’t Al Capone get into trouble for not paying taxes?
@ 3
As did Leona Helmsley and Neil Bush.
Put it under the jurisdiction of the Liquor Control Board. Specify in law how it can be produced and distributed. License producers, and regulate their output and production methods.
Legalize it for chrissake.
dude if i was say “im broke!” as an excuse to get into the marijuana “dispensary” business, they’d throw me in jail!
fuck you guys and your liquor control board! why don’t you just stick to the money you earn and stop trying to rob people?
@ 5
Those are the two most incongruous statements I’ve read today. Try to make some sense nitwit.
@6
That was so incoherent, I thought it was a spam bot, but I think it was an actual human being attempting to type “thoughts” with their keyboard.
@5
Wait, what? Are you high?
@3: That would be my concern if I was a pot proprietor (profit or not).
In order to tax, operations currently operating under the radar must be identified. Once identified, they will be on some DOR bureaucrat’s list.
And no matter how secure, the list will get out or be subpoenaed by the Feds (who can skip that nicety with a “National Security Letter” — most of which have resulted in drug prosecutions vice terrorist activities by a wide margin).
thoughts. thoughts. thoughts… why do you guys love the liquor board so much? i just think its kind of pathetic that the state is so desperate for money, they have to “legally” insert themselves into the drug trade as middle men.
i think we should hire the ninja turtles to sort this out.
pay your taxes bitches.