Skagit Organics News

Medical Cannabis Patients Will Soon Be Exempt From Paying 37% State Excise Tax

START DATE FOR EXCISE TAX REMOVAL IS OFFICIALLY JUNE 6th!!

WHAT YOU NEED TO KNOW AS A MEDICAL CANNABIS PATIENT

The short version – 

  • Only stores with a medical endorsement can offer sales tax and excise tax exemptions.
  • These tax exemptions only apply to DOH-compliant products.
  • This tax exemption is only available to Registered patients with a current physical card and in the patient database. 
  • High-THC DOH-compliant products may only be sold to registered patients and these products will qualify for the tax exemption.
  • General Use and High-CBD DOH-compliant products may be sold to anyone but they will NOT receive the tax exemption unless they are a registered patient. 
  • Registered patients may buy non DOH-compliant products but they will NOT receive any tax exemption.
  • Skagit Organics is one of only three companies that currently make DOH-compliant products and all of our products are DOH-compliant including flower and vape carts.
  • Confidence Analytics and Medicine Creek are currently the only two labs that are qualified to test for DOH-compliant products.

The Cannabis Alliance is a great resource for information. Please visit TheCannabisAllinace.us for more information about the organization. 

For patient information and resources please visit DOHcannabis.com or MedicalCannabisWA.com

House Bill 1453 was passed this legislative session and will remove the excise tax from DOH-compliant products for registered medical patients. This law will still go into effect on June 6th!

DOES A STORE NEED TO BE MEDICALLY ENDORSED TO OFFER THIS TAX EXEMPTION?

Yes! Only stores with a medical endorsement can offer this tax exemption. There are several additional requirements you must put in place before receiving this endorsement, such as having medical cannabis consultants on staff and the ability to enter patients into the database. Click here to find a list of medically endorsed stores. 

WHAT ARE DOH-COMPLIANT PRODUCTS?

DOH-compliant products are cannabis products that have undergone additional testing for heavy metals and are subject to more stringent rules and regulations. For a cannabis product to earn the DOH-compliant label, it must undergo testing that surpasses the state’s standards for normal recreational products. 

There are three types of DOH-compliant products: GENERAL USE, HIGH CBD, and HIGH THC. 

HOW DO YOU IDENTIFY THESE PRODUCTS?

Look for these logos on the packaging

   

 

 

 

 

WHY SHOULD YOU BUY THESE PRODUCTS?

These products will be tax-exempt for registered patients, meaning they will be up to 47% less expensive than other products, and the elevated testing standards associated with these products indicate they are of superior quality and effectiveness.

WHICH LABS CURRENTLY TEST TO DOH STANDARDS?

Confidence Analytics and Medicine Creek are currently the ONLY TWO labs that have the equipment and proficiency to conduct the required tests. If a product is labeled as “DOH-compliant”, ask the retail store to see the testing for that product. By law, every retail store is required to have the Certificate Of Analysis available to customers and patients for every product they carry. If the COA is not from one of these two labs we suggest asking more questions of the budtender or contacting the company that makes the product directly. 

 

WHEN DOES THE TAX EXEMPTION BEGIN?

Starting June 6th retail stores will no longer collect sales tax or excise tax from registered patients when they purchase DOH-compliant products. There is a lot of confusion among the retail stores about this new law so please be patient with them as this rolls out. 

Keep in mind that DOH-compliant GENERAL USE and HIGH CBD products are available for purchase by anyone, not just registered patients, but you will NOT RECEIVE the tax exemption off of these products unless you are a registered patient. 

HIGH THC products will remain only available for purchase by registered patients.

All of Skagit Organics’ products are categorized as GENERAL USE or HIGH CBD. 

WHICH COMPANIES MAKE DOH-COMPLIANT PRODUCTS?

There are only three companies in Washington State that test their products to these higher standards and we are one of them! Skagit Organics stands out as the premier DOH-compliant brand in Washington State. Our entire product line of concentrates, flower, vapes, and topical products are DOH-compliant. Notably, our RSO was voted Best RSO at the Leaf Bowl two years in a row and our Wild Mint topical line took home Best Topical this year! 

We expect there to be an influx of new DOH-compliant products and registered patients in the coming months. 

YOU CAN READ OUR OTHER BLOG POST HERE AND LEARN MORE!

There are only three companies that currently make DOH-compliant products and two labs that are approved to test to these standards. As the leading supplier of DOH-compliant products look to Skagit Organics for information regarding this subject. Reach out to us any time at info@skagitorganics.net.

 

 

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