The Washington State Liquor and Cannabis Board (LCB) has received several inquiries asking about the practice of bud tender tip jars.
In response, the LCB has reviewed its position and tipping is allowed at retail marijuana stores, according to a LCB emailed bulletin on Monday.
Tipping has not been an allowable practice in a licensed retail marijuana location. This position was adopted based on an interpretation of RCW 69.50.357, and indications that prices of products were being manipulated based on the size of a tip to avoid paying excise tax.
However, changes in RCW 69.50.535 established in House Bill 2136, modified the tax structure associated with marijuana sales, partially negating the concerns associated with prices being adjusted to avoid taxes.
The legislation also prohibited sales of marijuana and marijuana products conditioned on the buyer’s purchase of a service or non-marijuana product. It placed restrictions on “bundled” transactions as well. Due to the statutory change, the board has revisited the policy position, and its interpretation of the law.
Effective immediately, customer tipping is now an allowable practice in licensed retail marijuana stores. However, tipping cannot be required or a condition of sale, nor can it be linked to the price of the product to avoid tax obligations. If a licensee allows tipping for their staff, licensees are reminded that there may be business or employee taxes associated with tips received.
The city of Kent bans marijuana businesses but Greenside Recreational operates a shop on the West Hill near the Kent border.
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