As the medical marijuana industry emerges from the shadows, new entrants are learning a new lingo and methods that previously cloaked activities from the unconverted. Nowadays pretty much everyone know that ‘bud’ refers to marijuana flowers. As growers became more sophisticated, they adopted the tomato-growing habit of nipping out the tender side buds to produce one larger, more potent one. With dispensary operations becoming more prevalent the bar tenders of marijuana, or ‘bud tenders’ play an important role, particularly for the novice clients/patients.
Nowadays you are likely to encounter an intelligent bud tender across the counter in a marijuana dispensary, not a stoned punk as stereotypes might have some imagine. These are among the most favored positions in the industry. This is especially true for a young generation keen to polish their marijuana knowledge at places like the Oaksterdam University in Oakland, CA, that punts itself as America’s first and premier cannabis college.
Bud tender positions are popular because they are one of few roles where it’s possible to meet and greet medical marijuana customers directly, and exchange hot tips (of the intellectual kind) for enhancing the experience. As in the case of some fast food restaurants, the habit developed of putting out tipping jars for happy customers to fill. This also opened up the possibility in law enforcement minds that some sales could end up as ‘tips’ thereby avoiding sales tax, and they banned the practice.
The Washington State Liquor and Cannabis Board (LCB) thought it had the situation nailed down in Regulation RCW 69.50.357 relating to retail outlet rules. This inter alia states:
- Retail outlets shall sell no products or services other than marijuana concentrates, useable marijuana, marijuana-infused products, or paraphernalia intended for the storage or use of marijuana concentrates, useable marijuana, or marijuana-infused products.
A narrow definition suggests they were right that some bud tenders were selling their advice in exchange for tips.
The Washington LCB’s subsequent Regulation 2E2SHB 2136 modified the tax structure by exempting certain categories of medical marijuana from sales tax. Briefly, these are:
- Products the Health Department deems ‘medically beneficial’
- Low THC products medically endorsed for qualifying patients
- Products the Health Department deems low THC / high CBD
- Low THC marijuana products cooperatives produce for members
This means you could theoretically tip your bud tender in Washington State within this narrow range of choices, and the Washington LCB will allow this. Business owners should note that demanding a tip is a form of coercion, and if that is the case, the “tips” would be subject to business and/or employee taxes.