skip to Main Content
The stronger the joint, the higher the tax? Report weighs California marijuana tax change

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]

This Post Has 0 Comments

Leave a Reply

Your email address will not be published.

Recent Stories

State considers social equity licenses for people impacted by ‘war on drugs’ to get cannabis shop licenses

SEATTLE – The Washington State Liquor Cannabis Board is considering a point system that would give people convicted of a drug-related crime and did prison time – preferential treatment when applying for retail cannabis license. If adopted, the City of Seattle will adopt the same rules and set aside $1 million dollars in grant money…

Majority of RI cities and towns will vote on recreational marijuana sales

Thirty-one of Rhode Island’s 39 cities and towns will ask voters whether to allow the sale of recreational marijuana within their borders, the secretary of state’s office said Thursday. In May, Rhode Island became the 19th state to legalize adult-use recreational marijuana, with sales starting Dec. 1. The state plans to license 24 new retail shops…

Arkansas Supreme Court issues provisional order placing recreational marijuana amendment back on ballot

Conditional certification stipulated The Arkansas Supreme Court on Wednesday granted a petition to allow a proposed constitutional amendment that would legalize recreational marijuana back on the November ballot until it decides how to proceed with the Arkansas Board of Election Commissioners’ decision to not approve its ballot title. The Arkansas Supreme Court stated in court…

Sweeping cannabis bill becomes law, after yearslong effort on reforms

Vetoes study on medical marijuana in schools Governor Charlie Baker on Thursday signed into law a package of significant reforms to the state’s multibillion-dollar marijuana industry, capping a yearslong campaign by advocates, entrepreneurs, and regulators to rewrite the rules of cannabis commerce in Massachusetts. While officials said key aspects of the bill could take a…

More Categories

Back To Top
×Close search
Search