Washington State Ballot Measure State Ballot Measure

Advisory Vote No. 8, Senate Bill 6505 - Repeal

Senate Bill 6505 removed marijuana from the state definition of 'agricultural product' and removed marijuana growers from the state definition of 'farmer.' As a result, cannabis businesses no longer qualify for a whole host of tax breaks Washington State currently provides to its 'normal' agricultural and manufacturing industries.

Cannabis businesses already pay a 25% tax on their gross sales directly to Washington State. Additionally, cannabis businesses cannot deduct any 'ordinary or necessary' business expenses on their federal tax returns, which increases their federal tax burden to substantially higher levels than businesses in other sectors of the economy.

Advisory Vote Number 8 is non-binding, but acts as a direct response by the voters of Washington State to action taken by the legislature in their name.

Analysis courtesy of ASA-Washington