// Exemption

Cannabis and low THC products produced and used by cooperative members

Retail Sales & Use Tax exemption · RCW 82.08.9998(1)(e)(i); 82.12.9998 · enacted 2015

All exemptions & deductions

Details

Citation
RCW 82.08.9998(1)(e)(i); 82.12.9998
Study reference
E1711-1
Tax type
Retail Sales & Use Tax
Preference type
Exemption
Category
Other
Year enacted
2015
End date
None scheduled

Fiscal impact (2024 study estimates)

Revenue if repealed — local ($M)
FY 2024: 0 · FY 2025: I · FY 2026: I · FY 2027: I
Revenue if repealed — state ($M)
FY 2024: 0 · FY 2025: I · FY 2026: I · FY 2027: I
Taxpayer savings — local ($M)
FY 2024: I · FY 2025: I · FY 2026: I · FY 2027: I
Taxpayer savings — state ($M)
FY 2024: I · FY 2025: I · FY 2026: I · FY 2027: I

CTI = confidential taxpayer information · D = unable to disclose

From the 2024 DOR Tax Exemption Study

82.08.9998(1)(e)(i); 82.12.9998 - Cannabis and low THC products produced and used by cooperative members Description Sales and use taxes do not apply to cannabis products and low THC products (THC content less than 0.3%) produced and used by cooperative members. Purpose The legislature does not intend to tax the activities of medical cannabis cooperatives which are barred from selling cannabis. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes Indeterminate Indeterminate Indeterminate Indeterminate Local Taxes Indeterminate Indeterminate Indeterminate Indeterminate Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 Indeterminate Indeterminate Indeterminate Local Taxes $0.000 Indeterminate Indeterminate Indeterminate Assumptions The revenue impact is indeterminate, as the number of cooperatives is unknown. However, the impact should be negligible. Data Sources None Additional Additional Information Information Category: Other Year Enacted: 2015 Primary Beneficiaries: Medical cannabis cooperatives Taxpayer Count: Unknown Program I

Does this apply to you?

This is reference data from the 2024 study — not advice, and 2025–26 legislation may have changed it. Three ways to go deeper: