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Medical sales of cannabis are an important part of Washington’s cannabis industry. For licensees with a medical endorsement, there are some important requirements related to the endorsement and sales of products to qualifying patients with valid recognition cards. Please review the following requirements:
Requirements:
- Ensure that all employees are trained on medical cannabis including the ability to identify authorizations and recognition cards. (RCW 69.50.375 and WAC 314-55-080)
- Enter qualifying patients and designated providers in a medical cannabis database administered by the Department of Health (DOH).
- Only issue medical cannabis patient recognition cards compliant with DOH rules and keep records of qualifying patient’s and designated provider’s recognition cards and other records required by DOH and DOR.
- Ensure that cannabis products labeled as medical meet the requirements of medical cannabis laws and Department of Health rules.(RCW 69.51A and WAC 246-70).
- Enter information about medical sales in the traceability system.
- Taxes and exemptions: Cannabis licensees are required to report sales in CCRS and report and pay applicable taxes to the LCB. Please see the guide on how to submit the Cannabis Retailer Monthly Sales/Excise Tax form (Cannabis Tax Guide).
- Some transactions by cannabis retailers with medical endorsements are exempt (RCW 69.50.535, RCW 69.50.575, RCW 82.08.9998, WAC 246-70-040 and WAC 314-55-090)
- Donations or sales of medically compliant cannabis products (as identified by DOH) to customers with valid recognition cards verified in the DOH database (sales and excise tax exempt)
- Donations or sales of CHABA products (sales and excise tax exempt)
- Sales of high-CBD products (as identified by DOH) to ANY customer (sales tax exempt)
- It is the responsibility of the licensee and their medical consultant on staff to ensure the customer holds the proper credentials to receive sales tax exemptions.
- Remember: Check the DOH database every time you provide the tax exemption. A patient’s status can change even if their card looks valid or was valid the last time it was checked.
- Do not confuse tax exemptions with discounts. Properly apply the tax exemption to help avoid legal problems and protect the exemption for medical cannabis patients.
- If you are a licensee who holds a medical endorsement or are a licensee considering getting an endorsement, please review the laws and rules regarding medical products, medical card holders, and how taxes work for those transactions.
For more information on these, please visit the following resources:
And finally, A licensee or employee with decision-making authority may cancel a medical endorsement at any time by contacting LCB Licensing.
Medical Endorsement Application
cannabisendorsement@lcb.wa.gov
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