Recreational Marijuana Taxation In Your State
Lots of great news these past few months for marijuana users, now that cannabis is legalized in 8 different states. It is going to be much easier for any 21 and over adult to go in an buy as much cannabis product as needed. The only problem that no one really thought about was the state taxes and how much more you will be paying for the product.
California being one of the 8 states that have legalized the recreational use of marijuana, there are taxation approaches that are used in these states. California plans to impose a 15 percent gross receipts tax on retail sales, and an addition to a flat $9.25 per ounce om flowers and $2.75 per ounce on leaves. A state that is going to start selling recreational marijuana is Massachusetts and its starting percent tax on retail stores is 3.75%. Legislators decided to levy a 17 percent excise tax on Oregon, as well as for Colorado. For sales tax in Colorado, they are charging 5 different taxes:
- 10 percent state tax on retail marijuana sales
- 15 percent on excise tax
- 9 percent sales tax
- Local Sales Tax
- Local excise taxes on marijuana, such as the 3.5 tax in Denver.
There have been other proposals of taxing marijuana flowers at a flat dollar amount, taxing the producer instead of the retailer, or tax based on THC levels are difficult to apply. Colorado, Washington, and Oregon all have taken major steps to reduce marijuana tax rates in their states. What steps?? Colorado provided strong evidence that its 30% tax rate did not lower the black market, and the more recent initiative proposals all over the country are proposing a 10-25 percent tax.
Keep in mind that medical marijuana a bit more loosely monitored and less taxed than recreational marijuana. Washington being one of the states that charges 30% for recreational marijuana is fighting to bring the percentage down. I personally visited a Washington recreational retail store and felt like it was very expensive to buy there. Their sales tax starts off at 37 percent, so immediate products are going to be super expensive. You don’t get hooked up at all, if anything I felt like I got robbed. You can find more information on marijuana state taxes by visiting Taxfoundation.org.
Related: Top Marijuana Websites