Section 314-55-089 - Tax and reporting requirements for cannabis licensees(1) Cannabis retailer licensees must submit monthly report(s) and payments to the LCB. The required monthly reports must be:(a) On a form or electronic system designated by the LCB;(b)(i) Filed every month, including months with no activity or payment due;(ii) Each report will identify total product sales and total medical product sales where the excise tax was exempted pursuant to RCW 69.50.535(2) and WAC 314-55-090, in the form and manner required by the LCB;(c) Submitted, with payment due, to the LCB on or before the 20th day of each month, for the previous month. (For example, a report summarizing transactions for the month of January is due by February 20th.) When the 20th day of the month 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;(d) Filed separately for each cannabis license held; and(e) All records must be maintained and available for review for a five-year period on licensed premises (see WAC 314-55-087).(2)Cannabis producer licensees: On a monthly basis, cannabis producers must maintain records and report purchases from other licensed cannabis producers, current production and inventory on hand, sales by product type, and lost and destroyed product in a manner prescribed by the LCB. The act of keeping data completely up-to-date in the state traceability system fulfills the monthly reporting requirement.(3)Cannabis processor licensees: On a monthly basis, cannabis processors must maintain records and report purchases from licensed cannabis producers, other cannabis processors, production of cannabis-infused products, sales by product type to cannabis retailers, and lost and/or destroyed product in a manner prescribed by the LCB. The act of keeping data completely up-to-date in the state trace-ability system fulfills the monthly reporting requirement.(4)Cannabis retailer's licensees:(a) On a monthly basis, cannabis retailers must maintain records and report purchases from licensed cannabis processors, sales by product type to consumers, and lost and/or destroyed product in a manner prescribed by the LCB.(b)(i) A cannabis retailer licensee must collect from the buyer and remit to the LCB a cannabis excise tax of 37 percent of the selling price on each retail sale of useable cannabis, cannabis concentrates, and cannabis-infused products, except as identified in WAC 314-55-090 and RCW 69.50.535(2).(ii) Records of medical cannabis patient excise tax exemptions provided must be maintained as required in WAC 314-55-087 and 314-55-090.(c) Product inventory reductions that are not adequately documented will be deemed to be sales and will be assessed the excise tax.(d) Excise tax collected in error must either be returned to the customer(s) or remitted to the LCB if returning to the customer(s) is not possible.(5)Payment methods: Cannabis excise tax payments are payable only by check, cashier's check, money order, or electronic payment or electronic funds transfer. Licensees must submit cannabis excise tax payments to the board by one of the following means: (b) By paying through online access; or(c) By paying using a money transmitter licensed pursuant to chapter 19.230 RCW. If a licensee uses a money transmitter service, the licensee must remit payments in U.S. dollars.(6) Payments transmitted to the board electronically under this section will be deemed received when received by the LCB's receiving account. All other payments transmitted to the LCB under this section by United States mail will be deemed received on the date shown by the post office cancellation mark stamped on the envelope containing the payment.(7) The LCB may waive the means of payment requirements as provided in subsection (5) of this section for any licensee for good cause shown. For the purposes of this section, "good cause" means the inability of a licensee to comply with the payment requirements of this section because:(a) The licensee demonstrates it does not have and cannot obtain a bank or credit union account or another means by which to comply with the requirements of subsection (5) of this section and cannot obtain a cashier's check or money order; or(b) Some other circumstance or condition exists that, in the LCB's judgment, prevents the licensee from complying with the requirements of subsection (5) of this section.(8) If a licensee tenders payment of the cannabis excise tax in cash without applying for and receiving a waiver or after denial of a waiver, the licensee may be assessed a 10 percent penalty.(9) If a licensee is denied a waiver and requests an adjudicative proceeding to contest the denial, a brief adjudicative proceeding will be conducted as provided under RCW 34.05.482 through 34.05.494.(10) For the purposes of this section, "electronic payment" or "electronic funds transfer" means any transfer of funds, other than a transaction originated or accomplished by conventional check, drafts, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit a checking or other deposit account. "Electronic funds transfer" includes payments made by electronic check (e-check).Wash. Admin. Code § 314-55-089
Amended by WSR 14-10-044, filed 4/30/14, effective 5/31/2014Amended by WSR 15-11-107, Filed 5/20/2015, effective 6/20/2015Amended by WSR 16-11-110, Filed 5/18/2016, effective 6/18/2016Amended by WSR 16-19-002, Filed 9/7/2016, effective 10/8/2016Amended by WSR 18-22-055, Filed 10/31/2018, effective 12/1/2018Amended by WSR 22-14-111, Filed 7/6/2022, effective 8/6/2022Amended by WSR 24-19-040, Filed 9/11/2024, effective 10/12/2024Statutory Authority: RCW 69.50.325, 69.50.331, 69.50.342, 69.50.345. WSR 13-21-104, § 314-55-089, filed 10/21/13, effective 11/21/13. WSR 13-21-003, § 314-55-089, filed 10/3/2013, effective 11/3/2013