| Washington joined Colorado in voting for Initiative 502 to legalize adult-use marijuana in November 2012 and opened its market shortly after Colorado. | |
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| Legalization Dates: | Medical: I-692 passed in 1998 (full text) Adult-Use: I-502 passed in the November 2012 election (full text) |
| Relevant Legislation: | Marijuana Regulation in Washington State COVA summary of Washington laws |
| Regulatory Bodies: | Washington State Liquor and Cannabis Board |
| Licensing & Taxation Model: | There are three main licensing tiers in Washington state: marijuana producer, processor, or retailer. There are also transportation licenses that are very limited in scope. Washington prohibited vertical integration, meaning that one entity can hold a producer and processor simultaneously but a producer or processor cannot also be a retailer. Washington adult-use customers pay a 37% excise tax at the time of purchase. Medical patients are exempt from this excise tax. Medical patients can also purchase 3 times the daily limit as adult-use customers. |
| Example Firms: | Northwest Cannabis Solutions, Grow Op Farms, Artizen Cannabis Companies, BMF Washington |
| Industry Associations: | Washington Cannabusiness Association (WACA) Washington Sungrowers Industry Association |
| Market Size: | In fiscal year 2019, the state’s 482 dispensaries generated over $1 billion in revenues that generated over $390M in state tax revenue. In total the state has 1,410 licensees, but fewer dispensaries per capita than a number of other states (source). |
| As of May 30, 2020 |
An academic perspective on the emerging legal industry in the U.S., Canada and beyond by Prof. Paul Seaborn, McIntire School of Commerce, University of Virginia.
Business of Marijuana 