Should that marijuana joint cost more because it is higher in THC content? That’s the argument put forth in a new report by the California Legislative Analyst’s Office.
Currently, the state taxes cannabis at two points in the production cycle; cannabis is taxed by weight after it is harvested, and then taxed again as an excise tax at the retail level. The state is set to increase cannabis taxes at both levels on Jan. 1, 2020.
The analyst’s office proposes a novel change to that tax structure: Drop the cultivation tax entirely and tax cannabis by its THC potency instead. THC, or tetrahydrocannabinol, is the compound responsible for inducing the “high” often association with using marijuana.
The report, titled “How high? Adjusting California’s cannabis taxes,” recommends taxing THC in cannabis products between $0.006 and $0.009 per milligram.
If it were to do so, California would become the first state to tax cannabis based on THC content, according to the report, though Canada does so for concentrates, edibles and other cannabis products. [Read more at The Sacramento Bee]
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