Marijuana Tax Reporting Guide

 
What can you do to avoid your account becoming past due?
  • Know your tax responsibilities and plan for them.
  • It is recommended that you set up a separate account for your tax obligations and regularly deposit collected excise tax or other taxes you may owe. Withdraw the funds only when you pay the taxes.
  • Pay attention to the tax return due date - monthly sales are to be confirmed and marijuana excise tax paid on or before the tax due date of the following month.
  • Pay your tax obligation early to allow for issues with your bank (if using ACH, checks) or the post office.
  • If mailing your payment, we recommend that you go into the Post Office and request they hand stamp your envelope with the mailing date. 
  • Check your email for Balance Due Notices and respond promptly with your payment for the amount due.
  • Promptly notify the Liquor and Cannabis Board if your address and/or phone number changes by sending an email to licensingretail@lcb.wa.gov with your UBI and license numbers, old information and new information. 
     
Statutory Rules and WAC’s 
Links to statutory rules and WAC’s governing excise tax %, monthly sales reports, filing date, late payment penalties and unpaid tax obligations. 
Confirming your monthly sales reports
Marijuana licensees (all privileges) are required to confirm their monthly sales, even if you have no sales to report by the tax due date each month. You are not required to mail in a copy of your report if you confirm your information online. 
 
Paying your tax obligations
We encourage you to confirm your sales and pay your excise tax payment by EPay, check, cashier check or money order before the tax due date. This will assure that in the event there is an issue with your bank or the post mark on an envelope, you have the opportunity to replace or submit additional funds on or before the tax due date and avoid the 2% late payment penalty. 
 
EPAY / Electronic Reports
If you pay using the “Pay Now” function, the payment transaction must be completed and a confirmation number issued in order for your WSLCB payment submission to be complete.  We recommend confirming your tax obligation and submitting your electronic payment prior to the tax due date to ensure the EPay process is completed and submitted timely or if you should need assistance. 
 
The bank cut off time for processing payments each day is 11:59 PM (PST). Our program only allows for same day processing of your payment and you are not able to schedule payments for a future date. To avoid the 2% late payment penalty after tax day, we encourage you to process your payment at least two or more days before the tax due date. Please allow a minimum of two business days for the funds to transfer from your account. 
 
Mailed Reports / Payments
Mailed reports must be postmarked on or before the due date to be considered on time.  To ensure a postmark date, you must go into the post office and make sure they date stamp the envelope. A copy of your confirmed report must be included when mailed with payment (if applicable) to:
Washington State Liquor and Cannabis Board
Financial Division/Tax and Fee Unit
3000 Pacific Ave. SE
PO Box 43085
Olympia, WA 98504-3085 
A 2% late payment penalty will be assessed on any tax payments postmarked after the due date. When the due date falls on a Saturday, Sunday, or a legal holiday, the filing must be postmarked by the U.S. Postal Service no later than the next postal business day. 
 
Postmarks that are not legible, difficult to read (light, blurred or incomplete), partially off the envelope so the date cannot be read, and received after the tax due date will be considered late and will be assessed a penalty.
 
Absent a postmark, the date received at the Washington State Liquor and Cannabis Board, or designee, will be used to determine if penalties are to be assessed. 
 
Making your payment in person
If you wish to pay in person, checks, money orders, cashier checks are accepted at the front desk Monday – Friday (excluding holidays) and from 8:00 AM to 4:50 PM. Please note the doors are locked approximately each day at 4:50 PM and once locked we are not able to assist you. Please bring a paper copy of your confirmed tax report with your payment. 
 
If you wish to pay in person by another means than checks, money orders or cashier checks, an appointment is required and you must have an approved and active waiver. Payment appointments are accepted for tax day and the four business days before only. Our payment is closed from noon to one. Our last appointment is scheduled for 4:00 PM and we are not able to take payments after 4:30 PM. 
 
Before you call to schedule your appointment, your monthly sales reports must be confirmed. Please call if you are going to be late. We will try to reschedule your appointment however be aware that others are also waiting and you may be requested to wait or come back another day.
 
When making your payment in person, you must have a paper copy of the confirmed report (electronic copies are not acceptable), the exact payment amount is required including change and no rolled coins will be accepted. 
 
To Apply for a Marijuana Cash Payment Waiver
Payments by means other than ACH / EPAY, checks, cashier’s check or money order
 
A waiver is required to pay by cash. Request for waivers are to be submitted in writing by email or USPS, along with document copies of bank account application, bank account denial, cancellation or other information that would support your inability to get a bank account. Documentation to be considered must be dated within the last 90 days.  Waivers can be submitted by email to marijuanataxes@lcb.wa.gov or standard to:
Washington State Liquor and Cannabis Board
Financial Division
3000 Pacific Ave. SE
P.O. Box 43085
Olympia, WA 98504-3085
An appointment is required to make your payment - appointments are scheduled for tax day and the four previous business days before tax day (with the exception of holidays) from 8:30 A.M. to 4:00 P.M. (closed from 12:00 P.M. to 1:00 P.M.) 
 
Filing Due Dates
 
Reporting Period Due Date 2% Penalty Begins
July 08/21/17 08/22/17
August 09/20/17 09/21/17
September 10/20/17 10/21/17
October 11/20/17 11/21/17
November 12/20/17 12/21/17
December 01/20/18 01/21/18
January 02/20/18 02/21/18
February 03/20/18 03/21/18
March 04/20/18 04/21/18
April 05/21/18 05/22/18
May 06/20/18 06/21/18
June 07/20/18 07/21/18
 
Amending a Previously Filed Sales Report
To amend a previously submitted report, send an email to the Marijuana Tax Unit with the completed form for your privilege (Producer / processors use LIQ 1296 and Retailers use LIQ 1295). Include back-up information for our review.  Please note that your request will be forwarded to our MJ Examiners and Enforcement for review. You will be notified if your change has been approved. 
 
Forms Link - Amending Sales or Reporting Differences
 
Reporting sales / excise tax differences
Retailer’s over-collection of excise tax from cannabis buyers. If you collected more taxes than owed from a cannabis buyer, you are required to report the over-collection using the form LIQ 1295 and submit the form and taxes to WSLCB by the 20th of the following month. 
 
Record Keeping
Records (paper and electronic) must be kept for a minimum period of four years (current year plus previous three years). You may be required to retain records for longer periods to meet the requirements of other Washington agencies or to meet federal requirements. You may be required to provide paper copies during an audit. 
 
Auditing
The tax and fee review does not prevent the WSLCB from assessing tax in the future. In addition, the agency reserves the right to review your complete business accounting records through its regular audit process. You are required to keep your records on the licensed premises for a four year period (current year plus prior completed three-years) and they must be made available for inspection if requested by an employee of the WSLCB.
 
WSLCB Marijuana Examiners
Questions regarding changes to inventory, manifest, incorrect sales and transfers should be directed to the WSLCB Marijuana Examiners at mjexaminers@lcb.wa.gov or (360) 664-1614.
 
Marijuana Tax Reporting FAQs
For more information regarding Marijuana Excise Tax Obligations, please visit FAQs on Taxes.
 
Marijuana Information Page
Find up-to-date information on the Marijuana Information Page.

 

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