Published on Mar 21, 2018

Marijuana excise tax distribution increasing

Contact: Andrew Pittelkau

At the urging of AWC and with the determined help of legislators like Rep. Tana Senn (D-Mercer Island) and Sen. Karen Keiser (D-Kent), cities that receive a distribution from the Liquor and Cannabis Board for the sale and distribution of marijuana will see an increase in the distribution beginning in April.

Section 910 of adopted supplemental budget ESSB 6032 increased the maximum amount to be distributed from $6 million per fiscal year to cities and counties to $15 million per fiscal year triggered by the increase in marijuana excise tax revenue in the February 2018 state revenue forecast. This increased amount is permanent unless altered by future legislative action.

The distributions for cities and counties are allocated based on a formula that includes sales and population, except that jurisdictions with a ban on marijuana sales are still not eligible to receive a distribution.

March 2018 (quarter 3) distribution

On April 1, the distribution to cities and counties will include the higher quarterly distribution amount, plus a one-time make-up distribution for September and December 2017 (quarters 1 and 2). The quarter 3 amount will use a base amount of 25 percent of $15 million (instead of $6 million), or $3.75 million, an increase of $2.25 million from the $1.5 million distributed in quarters 1 and 2. The distribution will also include the difference in distributions for quarters 1 and 2, for a one-time additional distribution of $4.5 million. The total one-time quarter 3 distribution to cities and counties will be $8.25 million.

June 2018 (quarter 4) distribution

Then on July 1, future distributions to cities and counties for state fiscal year 2019 will continue at the increased amount of $3.75 million per quarter.

Actual distribution amounts will be varied by location, based on the formula.

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