Article- Comparing State MJ Taxes

Discussion in 'Marijuana News' started by Storm Crow, Dec 15, 2022.

  1. Just a news article that I thought would interest you. States vary quite a bit when it comes to adding "sin taxes" to their recreational cannabis. Shows just how greedy our politicians are, and how they (in some states) seem to be setting up the legal market to fail! :coolalt:

    Alaska ranks highest, New Jersey lowest in adult-use marijuana taxes, report says
    Alaska ranks highest, New Jersey lowest in adult-use marijuana taxes, report says


    Alaska’s recreational marijuana taxes are the highest in the country, and New Jersey’s are the lowest.

    That’s according to Richard Auxier and Nikhita Airi, the authors of the Urban-Brookings Tax Policy Center’s September report, “The Pros and Cons of Cannabis Taxes.”

    But it’s a tough comparison to make. No two states where adult-use marijuana is legal approach cannabis taxes the same way.

    “Every state is a special and unique flower,” Auxier, senior policy analyst for the Tax Policy Center, told MJBizDaily.

    From excise taxes to weight-based taxes to potency taxes to wholesale taxes and their respective rates, those discrepancies can make it difficult to compare adult-use marijuana taxes across the United States.

    Such a patchwork can also complicate tax planning for cannabis businesses with aspirations to expand to multiple states.

    That’s why Auxier and Research Analyst Nikhita Airi took a creative approach to examining marijuana taxes in various states in their report: comparing the taxes on a retail purchase of 1 ounce of cannabis flower in the 19 states where adult-use taxes were enacted by September 2022.

    To create the comparison without getting bogged down in price discrepancies between states, Auxier and Airi decided that the hypothetical retail price of an ounce of cannabis flower before taxes in each state is $100 – a round number that falls between the wholesale cost of an ounce in Colorado ($44) and Nevada ($130).

    The authors acknowledge that the actual retail price of an ounce would be higher for customers in most states. (snipped)

    In case your state is not in the top 10, lower in the article there is a chart with all the states listed.

    Granny :wave:
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