Taxes

Washington lawmakers are considering raising taxes on highly potent cannabis products, proposing a 50% tax rate for products containing between 35% and 60% THC and a 65% tax rate for products exceeding 60% THC.

Cannabis operators from every corner of the market have to deal with restrictions from IRS Revenue Code 280E but, with careful planning and tax strategies, cannabis entrepreneurs can work to reduce its impact on their business.

This week in Aurora, Colorado, officials are opening the city’s second community recreation center funded by cannabis taxes.

If Hawaii were to legalize adult-use cannabis, the state’s annual cannabis tax revenue could reach between $34 million and $53 million. Lawmakers are likely to consider a legalization proposal later this year.

Minnesota lawmakers’ proposal to legalize adult-use cannabis includes social equity considerations, home grow provisions, and an additional 8% tax on cannabis products.

Connecticut has launched its regulated adult-use cannabis market with nine retail dispensaries opening across the state on Tuesday.

Arizona sold $1.6 billion worth of cannabis in 2021 to become the second-largest cannabis market in the U.S. behind California.

Missouri became the first mid-western state and the 21st state overall to approve adult-use cannabis reforms in Tuesday’s elections.

Colorado has sold $13.4 billion worth of adult-use cannabis since its legalization in 2012, generating $2.2 billion in taxes for the state. 

The Hawaii Tax Department released projections that adult-use cannabis legalization could lead to an estimated $50 million in additional annual state revenue.

The New Jersey Assembly passed a proposal to let licensed cannabis businesses deduct certain expenses from their state tax filings; the bill still needs to pass the Senate and be signed by the governor.

On Monday, the Czech cabinet was slated to review a draft plan for addressing drug addiction in the country including launching a regulated cannabis market and increasing spending on treatment.

Nevada adult-use cannabis sales reached $965 million during the fiscal year 2022.

Illinois has topped more than $1 billion in 2022 cannabis sales by the end of August which represents a 16% year-over-year increase from the previous year.

Arizona’s adult-use cannabis sales reached $76.5 million in May while medical cannabis sales fell to their lowest total since January 2021 at less than $45 million.

According to the New Jersey Cannabis Regulatory Commission, total adult-use cannabis sales reached $80 million during the program’s first 10 weeks.

Rhode Island’s November elections will see 31 municipalities voting on whether they will opt into allowing adult-use cannabis retail sales and the resulting cannabis industry tax revenues.

Massachusetts Gov. Charlie Baker (R) signed a package of cannabis industry reform bills which includes provisions for tax reforms, expungement, social equity, and changes to industry fees.

Adult-use cannabis tax revenues grew by 50% year over year in Illinois, reaching $445.3 million in 2021.

Cannabis sales in Colorado hit $153.68 million for the month of May, a 32% decline from the state’s all-time high in July 2020.

Arkansas medical cannabis patients purchased more than $22 million worth of cannabis in June.

Arizona’s adult-use cannabis sales reached $75.5 million in April which represents a decrease of $5 million from March.

New Jersey’s medical cannabis taxes were officially phased out as of July 1 under the Jake Honig Compassionate Use Medical Cannabis Act.