Pot Taxes Paid In Cash? Washington Says OK
By Austin Jenkins
Marijuana-based businesses in Washington will be able to pay their taxes in cash. That’s the word from the state’s Department of Revenue. The agency is gearing up for more cash filers in its field offices.
Most banks are unwilling to open accounts for marijuana businesses because of the federal prohibition on pot. That means Washington’s new, legal recreational marijuana market could be a largely cash-based enterprise. That’s a challenge in a mostly electronic world. However, Kim Schmanke with Washington’s Department of Revenue says her agency is already equipped to accept tax payments in cash.
Kim Schmanke: Actually Revenue has a number of customers who currently do pay their taxes in cash in our field offices and we anticipate the influx of cash transactions in our field offices so we are preparing our staff and bringing in the cash counting equipment.”
Revenue will collect retail sales and Business and Occupation taxes from marijuana companies. Washington’s Liquor Control Board is responsible for collecting the 25-percent excise taxes at the producer, processor and retail levels. But a spokesman says the Liquor Board has not yet figured out how to collect those taxes. One hope is a banking solution will emerge before the pot market really gets going next spring.