Taxes

A recent study found that California could double its cannabis-derived tax revenues by removing the state’s cultivation tax, which would attract more customers by aligning industry prices closer to that of the traditional market.

Excise taxes for cannabis far exceeded those of alcohol in 11 states with functional cannabis programs, according to an Institute on Taxation and Economic Policy report.

Washington D.C. is waiving medical cannabis registration fees and the local 6% sales tax on medical cannabis products through April 24, hoping to attract more patients to the District’s licensed dispensaries.

The Oklahoma Medical Marijuana Authority has designated $2 million from medical cannabis taxes to fund youth substance abuse programs in the state.

Montana’s latest revenue report shows that first-quarter cannabis sales reached $72.9 million, far exceeding initial expectations.

New York lawmakers and Gov. Kathy Hochul (D) have agreed to let licensed cannabis companies take normal business tax deductions like any other industry.

Michigan cannabis sales reached $1 billion during the fiscal year 2021, generating millions in tax revenue for municipalities, education, and transportation funds.

New York’s adult-use cannabis law includes a potency tax that, combined with sales and other local taxes, could drive prices for an eighth of cannabis up to $70.

Arkansas saw medical cannabis sales reach $21.1 million in February, bringing a total of $2.333 million in tax revenues.

A California Senate proposal would create new tax credits for state-licensed cannabis retailers to lift some of the financial pressures off legal operators.

A recent survey by the National Cannabis Industry Association and Whitney Economics found that 37% of cannabis businesses in the U.S. are not profitable.

Law enforcement raided a Los Angeles dispensary for all of its cash — including the budtender tip jars — over an appealed $66,000 fee related to the company’s inability to pay taxes in cash during the pandemic.

Arizona’s community colleges received more than $31 million from cannabis-derived taxes last year.

A California proposal is seeking to suspend the state’s cannabis cultivation tax and increase its retail excise tax to cover the resulting dip in state revenues.

A recent New Mexico Supreme Court ruling confirmed that medical cannabis purchases in the state cannot be taxed.

Medical cannabis sales in Arkansas surpassed $20 million in January 2022, raising $2.84 million in tax revenue for the state.

Oregon lawmakers are considering a proposal to let certain counties that border states where cannabis remains outlawed increase the local cannabis tax rate from 3% to no more than 10%. Only Malheur County, next to Idaho, would qualify.

In a move that should boost the city’s flailing cannabis industry, San Diego’s City Council voted to reduce the tax rate on cannabis producers from 8% to 2%.

New York Gov. Kathy Hochul’s (D) administration is reportedly expecting $1.25 billion in cannabis tax revenue over the next five years.

Adult-use cannabis excise taxes in Massachusetts surpassed those of alcohol for the first time in December by nearly $23 million.

California Gov. Gavin Newsom (D) said in a recent budget proposal that he would support the restructuring of California’s cannabis tax policy.

Arizona set a new record in November, topping $60 million in monthly adult-use cannabis sales for the first time.

Rochester, New York’s mayor-elect Malik Evans has proposed using cannabis taxes to bolster a universal basic income program for his constituents.