A Question for Cannabis Retailers: Are You Following All Excise Tax Laws?
Marijuana excise tax — RCW 69.50.535
As a licensed marijuana retailer, you are required to collect the 37% marijuana excise tax on all marijuana products sold. Your sales receipts should list marijuana excise taxes separately from retail sales taxes collected. The collected marijuana excise tax funds should be kept separate from other business revenue and the amounts kept in a dedicated account. As the “seller” you are personally responsible for paying the collected marijuana excise tax to the LCB.
Record keeping — WAC 314–55–087
Your business records must be retained and kept on the licensed premise for five years. Those records are to be made available for inspection when requested by the LCB. Business records include, but are not limited to:
· Point of sales system detailed transactions
· Bank statements and check registers
· Accounting and tax records
· Summary accounting records — sales, purchases and excise tax accrual
· Account reconciliations for cash and collected excise / sales tax and daily balancing records
· Purchase invoices, manifests and supporting documents
· Physical inventory counts and adjustments
· Destruction records
· Samples disbursed
Reporting and paying — WAC 314–55–089
To be compliant with Finance Tax and Fee requirements, your monthly sales/tax reports and payment of the collected marijuana excise tax and assessed penalties are to be submitted on or before the tax due date of the month following completed sales.
You must report your sales using the LIQ 1295 Retailers Sales and Excise Tax monthly report. If you collected more than the calculated amount, you are to report and pay any additional collected “excise tax” (e.g. marijuana product sales x 37%), unless you are able to refund that amount to the buyer.
Completed LIQ 1295 Retailers Sales and Excise Tax monthly report can be emailed to marijuanataxes@LCB.wa.gov. To avoid delays in processing your report, please send your report as an Excel spreadsheet, PDF or printed form with your information. The LCB is not able to process reports using “Google Links” and do not have access to your point of sales systems.
If you are mailing your LIQ 1295 Retailers Sales and Excise Tax monthly report and payment, to be considered on-time, it must be post marked on or before the tax due date (e.g. 20th of the month following the sales). To ensure you payment is recorded to your account, please include your license number on the cashier check, check or money order.
Failure to pay excise taxes and late payment of excise tax — WAC 314–55–092
If your account is not compliant with reporting your monthly marijuana product sales and paying the collected “excise tax,” your account may be assessed the 2% late payment penalty on outstanding account balances. If your account is not compliant, your license may be suspended or revoked.
Unpaid trust fund taxes — Limited liability business entities — Liability of responsible individuals — Administrative hearing — RCW 69.50.570
The LCB may pursue collection of unpaid “excise tax” including penalties on those taxes. Do you have questions? Call the LCB’s Finance Tax and Fee — Cannabis Unit (360) 664–1789 or email marijuanataxes@LCB.wa.gov. Additional information can also be found in our tax guide.
