Excise Tax Payment

A proviso in the 2016 Supplemental budget allows the Board to require licensees to pay their marijuana excise taxes using means other than cash. The Board intends to enact the proviso to reduce the safety risks associated with large amounts of cash. Starting July 1, 2016, for the taxes collected in June, licensees who pay in cash will need to do so by other means such as E-file, cashier’s checks, money orders, or personal/business checks.

Waiver
In the event that a licensee cannot pay their excise taxes in one of the formats listed above they may seek a waiver. To obtain a waiver the licensee must demonstrate that they have a pending bank account, have been denied a bank account within the last 90 days or had an account closed within the same time period. Waivers are effective for six months.
If you believe you qualify for a waiver please provide the documents to support your position (bank correspondence, etc) to our Marijuana Tax Unit via email; marijuanataxes@lcb.wa.gov.

Penalty
Licensees without a waiver will still be able to pay in cash however the Board will impose a 10 percent penalty. That penalty will be assessed before the taxes paid. Example: $50,000 would require a $5,000 penalty making the total $55,000 with the penalty being paid first.

Proviso Language
”The liquor and cannabis board may require electronic payment of the marijuana excise tax levied by RCW 69.50.535. The liquor and cannabis board may allow a waiver to the electronic payment requirement for good cause as provided by rule.”

 

 

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