Tag Archives: taxes

Kitsap will receive $200k from marijuana excise tax in FY 2017

paper_leaf_img_6126_webMore than $200,000 in marijuana excise tax revenue will flow into Kitsap in the coming year.

Kitsap County is in line to receive $126,774, according to a list of fiscal year 2017 tax distributions posted by the Liquor and Cannabis Board.

Port Orchard will receive $40,107, Bremerton $27,989 and Bainbridge Island $16,419.

Poulsbo, which has a moratorium on marijuana businesses, will not receive any money.

The state committed to distributing $6 million in revenue from the 37 percent tax on recreational marijuana to local governments in both fiscal years 2016 and 2017. (The fiscal year runs July through June.)

The money is divvied up based on the amount of marijuana tax generated in each jurisdiction in the previous year. Kitsap governments are spending the money on law enforcement.

Beginning in fiscal year 2018, the state will distribute 30 percent of marijuana excise tax revenue to local governments. Thirty percent of that amount will go to cities and towns. Seventy percent will go to counties.

Kitsap retail sales up 10 percent in first quarter

Retail sales increased 9.7 percent in Kitsap County during the first three months of the year, outpacing the statewide growth in sales.

shoes6_22899584_ver1.0_640_480Kitsap establishments reported $914 million in taxable sales in the first quarter of 2016, compared with $834 million in the first quarter of 2015, according to the state Department of Revenue.

Retail trade sales (subset of retail sales that includes transactions made by dealerships, stores and other businesses selling merchandise directly to consumers) were up 6.7 percent, marking the largest percentage increase in the region.

Statewide, retail sales grew 8.9 percent in the first quarter and retail trade sales grew 5.1 percent.

Here’s a chart showing sales growth in Puget Sound area counties:

Sales by industry

Major retail trade industries reporting increased sales included auto dealers and parts stores (up 12.4 percent), building and garden material suppliers (up 10.7 percent),  drug and health stores (up 31.3 percent), and sporting goods, toys, book and music stores (up 7.1 percent).

General merchandise stores experienced a 1.5 percent dip in sales, after enjoying a strong fourth quarter.

Outside of retail trade, building construction climbed 24.7 percent, manufacturing 7.1 percent, wholesale trade 16.5 percent, and accommodations and food services 12.5 percent.

Here’s a full breakdown of sales by industry (click the full screen button to avoid squinting):

Kitsap retail sales up 10 percent in fourth quarter

20051225-013527-pic-742444482Kitsap retailers had cause to celebrate during the 2015 holiday season.

The $1.03 billion in taxable retail sales reported by county businesses during the last three months of the year marked a 10.4 percent increase from the same period of 2014.

Kitsap posted the largest percent increase in fourth quarter sales of any county in the Puget Sound region, according stats from the state Department of Revenue. 

Retail trade sales — sales made by dealerships, stores and other businesses selling merchandise directly consumers — were up 7.7 percent.

Major retail trade industries reporting increased sales included auto dealers and parts stores (up 11.4 percent), building and garden material suppliers (up 12.5 percent), and general merchandise stores (up 5.1 percent).

Outside of retail trade, building construction was up an impressive 25.4 percent, manufacturing up 7 percent, wholesale trade 16.3 percent, information up 14.5 percent, and accommodations up 26.1 percent.

(Click here to see the year-over-year change in sales every industry in Kitsap.)

Annual sales

With the fourth quarter stats in hand we can now see how 2015 sales stacked up to previous calendar years.

Retail sales in Kitsap increased by 9.96 percent from 2014 to 2015, and 26 percent from five years ago.

Here’s a chart showing annual retail sales in Kitsap for the past five years:

Third quarter retail sales topped $1 billion

Taxable retail sales in Kitsap County topped $1 billion for the first time in the third quarter of 2015.

The $1.01 billion in sales reported from July through September marked a 9 percent increase from the same period of 2014, according to the Department of Revenue. 

Retail trade sales were also up about 9 percent in the third quarter, with $524 million reported. Retail trade sales are sales made by dealerships, stores, online sellers and other traditional retailers.

These were some third quarter highlights:

  • Sales by new and used auto dealerships were up 19 percent
  • Sales of building materials were up 8.6 percent
  • Sales by general merchandise stores were up 6 percent
  • Construction was up 9.25 percent
  • Wholesale trade was up 11.4 percent
  • Information was up 10.5 percent
  • Accommodations and food services up 8.9 percent

Kitsap’s growth in retail trade sales set the pace for Puget Sound counties in the third quarter:  

The jump in third quarter retail sales came on the heels of an 11 percent increase in second quarter sales. We should see sales figures from the fourth quarter of 2015 a few months from now.

Kitsap sees first drop in legal marijuana sales


Kitsap County’s first recreational marijuana store opened in August of 2014 and sales soared for the next 14 months.

That trend changed abruptly in November, when the county saw its first month-to-month decline in retail marijuana sales.

Gross sales dipped by nearly 9 percent between October to November, according to numbers posted by the state Liquor and Cannabis Board:

The decline in sales wasn’t limited to Kitsap. Washington recorded its first statewide drop in retail marijuana revenue back in July, following a restructuring of the excise tax, and sales slipped again in November:


A one-month falloff in sales is far from a trend, but the decline does come at an interesting time for the industry.

The Liquor and Cannabis Board announced plans last week to lift the cap on retail licenses, as the state prepares to roll the marginally-regulated medical marijuana system into the tightly-controlled recreational marijuana system. The number of stores allowed in Kitsap would increase from 10 to 20.

Some legal marijuana sellers believe the market is already becoming saturated in Bremerton and Port Orchard, pointing to a plateau in per-store sales this fall.

The chart below shows gross sales for each of the seven active marijuana stores in Kitsap (an eighth store, called The Reef, just opened in Bremerton, and a tribally-owned store opened in Suquamish).

You can wave your mouse over the store names to highlight their sales:

Click here for more Kitsap marijuana industry coverage.

Kitsap retail sales jumped 11 percent in second quarter

Q2.retail.graphicTaxable retail sales in Kitsap County took a big jump in the second quarter of 2015, increasing 11 percent from the same quarter of 2014.

That was the largest year-over-year jump in quarterly sales for the county since the start of the recession.

Sales totaled more than $963 million in the second quarter, according to the Department of Revenue. 

Statewide, retail sales reached $33.9 billion, marking a 9.4 percent increase from the same quarter of 2014.

Retail trade sales

retail trade sales

Sales reported by Kitsap’s retail trade industry in the second quarter were up 10 percent from the same period of 2014.

Retail trade accounted for about $512 million of Kitsap’s taxable sales in the second quarter.

Retail trade sales include sales made by stores, dealerships, online sellers and other traditional retailers.

County comparison

Here’s a look at how Kitsap’s second quarter sales stacked with other Puget Sound counties:


Kitsap highlights

The auto, building material and construction sectors continued their resurgence, posting double-digit increases from the second quarter of 2014.

Though a much smaller player by sales volume, manufacturing enjoyed a 19 percent increase in taxable sales.

Here’s a look at year-over-year growth for a few major industries in Kitsap:

Sales by industry

And finally, I’ve posted a full breakdown of second quarter retail sales by industry for Kitsap County:

Kitsap pot businesses grossed $6M in first year

Rachel Seymour photo

One year ago Wednesday, a shop in Bellingham sold the first bag of legal marijuana in Washington state.

The sale marked a milestone for Kitsap County too: That first bag of pot was grown Bremerton. 

In the year that followed, Washington recreational marijuana businesses recorded more than $250 million in gross sales, generating $62 million for the state in excise taxes. Add in other state and local taxes and the total tax bill topped $70 million.

Kitsap marijuana retailers, growers and processors grossed about $5.75 million, generating $1.44 million in excise tax, according to statistics made available by the Liquor Control Board. Nearly $5 million of gross revenue came from the retail side.

Kitsap’s busiest marijuana shop made $430,000 in sales in June alone.

The county can expect much higher sales totals in the coming year.

Ten Kitsap marijuana enterprises — four shops and six producer/processors — recorded sales between July 2014 and the end of June. As of this week the county had 16 licensed pot businesses, with several more in the works.

Relaxed taxes could also lure more customers to recreational shops.

During the first year of sales, marijuana was taxed 25 percent when sold between a producer and processor, another 25 percent when sold to the retailer, and a final 25 percent when sold to the consumer, resulting in an excise tax of up to 75 percent.

A law enacted this summer will reduce the overall tax to 37 percent.

And that’s not the only sweeping change ahead for the fledgling industry. At the direction of the Legislature, the state will essentially dismantle the existing medical marijuana system over the next year, and roll what’s left into the recreational system.

The expected closure of medical dispensaries will reduce competition for the licensed shops and drive up recreational pot sales.

Here’s a graphical look at the first year of marijuana sales in Kitsap:

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Graphic: Recreational marijuana sales in 2014

The state’s legalized pot industry began to bear fruit in 2014.

The newly-licensed recreational marijuana businesses grossed $65.4 million by the end of the year, generating more than $16 million in excise taxes.

Here’s a graphical look at how Kitsap’s recreational marijuana industry faired during its first few months in existence:

Corrected statewide marijuana sales numbers. Earlier numbers listed included 2015.

Free tax help available across Kitsap

The Super Bowl is over, which must mean it’s tax time.

As in years past, a small army of volunteers is fanning out across Kitsap to provide free income tax help.

The Tax-Aide program, a joint effort of IRS and AARP, will have stations in Bremerton, Kingston, Port Orchard and Silverdale, and on Bainbridge Island. The service is available to people of all ages.

Volunteers can help tax payers prepare and file their returns, or just answer questions. They’re trained on most the tax law changes for 2014.

Full details, including times and dates for the various assistance locations, are posted below. You can download the PDF or print it out and stick it on your fridge:

Volunteer tax helpers needed


blog.taxhelpAARP Foundation Tax-Aide is looking for volunteers to provide free tax help during the upcoming income tax season.

You don’t need to be an AARP member or have an accounting degree to pitch in. Training will be provided for volunteers of all experience levels.

Here’s the full notice:

Looking for a rewarding opportunity to make a difference in Kitsap County? 

 AARP Foundation Tax-Aide — the nation’s largest free tax preparation and assistance service — is now seeking volunteers for the 2014 tax season. You don’t have to be an AARP member to volunteer and you don’t have to have any experience doing taxes. You just have to have a desire to help your neighbors.

 Tax volunteers receive free tax training in December and January, in association with the IRS. Once trained, they work a few hours a week from late January through mid-April, interacting with clients by filling out tax returns. Even if you don’t have accounting or tax preparation experience, becoming a tax volunteer may be right for you, if you have a knack for working with numbers.

 To volunteer, go to www.aarp.org/taxvolunteer. About half way down the page you will see “Become a Volunteer for Tax Aide”. Fill out the on-line application.

Get the joy and satisfaction of helping others by applying to join the AARP Foundation Tax-Aide volunteer team today. Your expertise will be appreciated more than you can imagine.