To: Hashish Licensees
Fr: Justin Nordhorn, Director of Coverage and Exterior Relations
Re: Implementation of SHB 1453, Momentary Excise Exemption
Final week, the Liquor and Hashish Board (LCB) despatched a message that the 2024 legislative papers at the moment are out there on our web site. In that message, we famous that we are going to observe up with extra info concerning Substitute Home Invoice 1453 concerning a short lived exemption from the excise tax in sure circumstances.
SHB 1453 creates a short lived exemption from the excise tax on the sale of hashish that meets three situations.
- First, the customer have to be a affected person registered within the Medical Hashish Authorization database of the Division of Well being (DOH).
- Second, they need to buy hashish from a vendor who holds a present medical endorsement.
- Third, solely DOH-compliant medical hashish underneath WAC 246-70-040 qualifies for excise obligation exemption. No different hashish merchandise qualify for the excise obligation exemption, which expires on June 30, 2029.
To additional make clear, we offer this infographic and a few quick FAQs. Within the FAQs there are hyperlinks to the DOH's medical hashish program, in addition to the place on the LCB web site to use for medical approval.
Efficient June 6, 2024
The efficient date for the exemption is June 6, 2024. Sellers should preserve correct data exhibiting that the 37% excise tax exemption was offered by a medically permitted retailer, to a certified affected person, or to their designated supplier, within the DOH registry, and for medicines. full product underneath WAC 246-70-040. Sellers are accountable and answerable for tax assortment and proper remittance. Retailers who present inappropriate tax exemptions should pay taxes on any gross sales that don’t adjust to the regulation.
Correct documentation
The LCB audit staff can not present an actual listing of processes and paperwork required exterior of the WAC guidelines which are vital as a result of every enterprise is managed in a different way and the paperwork to be reviewed could change primarily based on the enterprise. Our audit and tax groups work to construct the principles and necessities to confirm certified gross sales. Till then, Licensees should evaluate their processes for compliance with the regulation and preserve data that justify gross sales and certified exemptions.
Thanks on your evaluate. For extra questions, please contact your hashish marketing consultant or enforcement officer.
