Records Released In Cannabis Tax Flap
What inspired Washington state’s recent efforts to collect sales tax on medical marijuana sales at dispensaries — despite the fact that such sales are illegal, according to the state and federal governments? A marijuana activist group has received documents which may provide the answer.
The Washington State Department of Revenue mailed letters to 90 dispensaries two weeks ago, insisting that medical marijuana is not exempt from state sales tax — as are other medicines — and telling dispensaries they must collect that money and turn it over to the state.
But as noted by the Department of Revenue itself, “Current Washington State statutes (and Federal law) do not allow a prescription for marijuana because it is a Schedule I controlled substance. Even though Washington has a specific ‘medical’ marijuana chapter in statute, the prescription statutes and case law do not acknowledge that any valid medical purpose exists for marijuana.”
“Marijuana is a Schedule I controlled substance which cannot be prescribed under either federal or state law in Washington,” the document notes. “Since marijuana cannot be prescribed, retail sales tax applies to purchases of marijuana and must be collected/remitted by the seller.”