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
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- Revenue if repealed — local ($M)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- Revenue if repealed — state ($M)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
1. [Home](/) 2. [Taxes & Rates](/taxes-rates) 3. Taxes Due On Cannabis Print # Taxes due on cannabis All businesses that sell any type of cannabis in Washington (including cannabis concentrates, useable cannabis, and cannabis-infused products) must be licensed with the Liquor and Cannabis Board (LCB). Any business that sells cannabis must file and pay taxes to the department, regardless of their license status with LCB. ## Applicable taxes Business and occupation (B&O) tax applies to your business’s gross receipts. You must also collect and submit sales tax on your retail transactions. Retail sales tax must be paid to the Department of Revenue. The fact sheets in the "More Information" section explain your responsibilities. ## Purchases for resale Cannabis processors, producers, and retailers may use a [reseller permit](/taxes-rates/retail-sales-tax/reseller-permits) when making purchases for resale. Examples include, but are not limited to: * Cannabis products and accessories. * Packaging materials and containers. * Ingredients that physically become part of the article for sale. Reseller permits may **not** be used for purchases of products or equipment used to grow
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: