In November 2012, Washington voters accepted the manufacturing, processing, and retail gross sales of leisure hashish inside Washington state below what is named Initiative 502 (“I-502”). Washington state then supplied a regulatory framework for the way the legalization of leisure hashish manufacturing, processing, and retail gross sales could be regulated below what would develop into the Washington State Liquor and Hashish Board (“LCB”).
Washington State’s unfair taxation of medical hashish
The LCB is tasked with reviewing, approving, regulating, and monitoring hashish licenses inside Washington state. The LCB can be tasked with administering and gathering excise taxes regarding the retail sale of hashish concentrates, useable hashish, and cannabis-infused merchandise inside the state. Hashish gross sales in Washington state are at the moment taxed at a fee of 37%, along with the overall state and native gross sales and use taxes. Qualifying sufferers and suppliers are exempt from the overall and native gross sales and use taxes on the sale of hashish merchandise compliant with the Division of Well being (“DOH”) however have continued to be topic to the 37% excise tax, till now.
HB 1453 seeks to alleviate the unfair tax burden on medical hashish sufferers and suppliers
On March 6, 2024, the Washington Senate handed HB 1453 which can present an exemption from the 37% excise tax for medical hashish sufferers and designated suppliers. The invoice now waits for signatures and government motion to develop into legislation. First launched in 2023, HB 1453 sought to harmonize the present medical exemptions from normal gross sales and use taxes with the 37% excise tax on hashish gross sales.
Medical hashish sufferers and suppliers face a big monetary burden when sufferers and suppliers are unfairly taxed the identical as leisure shoppers.
Primarily, medical hashish is just not leisure or a luxurious, however a necessity for many individuals that suffer from power ache, epilepsy, PTSD, and different circumstances. Medical hashish is commonly the one efficient therapy that permits them to perform and enhance their high quality of life. Medical hashish sufferers and suppliers should already soar by way of further regulatory hoops to remain compliant with the LCB and the DOH and the imposition of further taxes solely exacerbates this hardship. Medical hashish sufferers and suppliers comply with strict guidelines and tips to entry the medication not required by leisure hashish customers and suppliers, and it’s unjust to additional penalize these medical sufferers and suppliers.
Medical hashish is already costly and never lined by insurance coverage or public well being packages. Including a tax geared toward leisure gross sales on high of that makes it much more unaffordable for a lot of sufferers who’re already struggling financially. This could power them to cut back their dosage, swap to cheaper however much less efficient merchandise, and even flip to the leisure market which doesn’t have the identical DOH necessities and compliance requirements. Taxing medical hashish sufferers the identical as leisure shoppers is a type of discrimination that harms their well being and well-being. It additionally goes towards the precept of hurt discount, which is one foundation of medical hashish legalization coverage.
Recognizing medical hashish as a vital drugs
Washington lawmakers have lastly acknowledged that medical hashish needs to be handled as a drugs, not a commodity, and exempted from the 37% excise tax together with the present exemption from normal and native gross sales and use taxes. The passage of HB 1453 marks a big step in the direction of assuaging the unjust monetary burden on sufferers and suppliers. If signed into legislation by Governor Jay Inslee, HB 1453 will take impact ninety (90) days after the adjournment of the present legislative session and can present medical hashish sufferers and suppliers a much-needed tax exemption for his or her drugs.