Category: cannabis taxes

Will Taxes be Too High on Legal Marijuana in California?

Getty According to a new report from the global credit ratings firm Fitch Ratings, taxes on legal adult-use marijuana in some parts of California could equal or even exceed 45 percent. “High tax rates raise prices in legal markets, reinforcing the price advantage of black markets,” the firm said in the report. “California’s black markets for cannabis were well established long before its voters legalized cannabis in November 2016 and are expected to dominate post-legalization production.” In other words, if taxes raise the price of legal cannabis too much, most people will stick with their illegal dealers. Licenses for...

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Colorado Has Collected Over $500 Million in Marijuana Taxes Since 2014

Getty One of the major selling points for cannabis legalization in states that have yet to legalize for adult use is the prospect of increased tax revenue. When marijuana is sold on the black market, no taxes are paid or collected. But when marijuana is brought into the light of the legal market, the money that previously went to dealers goes to legitimate businesses, businesses that can only stay in business by following the various rules and regulations set forth by the state; one of those rules is being accurate and prompt in paying taxes. Retail sales of marijuana...

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No, Higher Tax Rates Do Not Mean More Tax Revenue

AP There is a theory prevalent among many politicians that all you need to do to raise more tax revenue is to raise the tax rate; this theory is as old as the concept of taxation itself, and no matter how many times it is debunked there will still be a group of people in power who see the theory as common sense. After all, 20% of $100 is $20. Ten percent of $100 is only $10. And $20 > $10. So to increase revenue from $10 to $20 all you have to do is raise the tax rate...

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Massachusetts House Delays Vote on Changes to the Voter Approved Marijuana Law

There have been a number of delays as Massachusetts lawmakers prepare for the state to bring on the new legal cannabis industry. They have been discussing how they are going to regulate the new industry since the start of the spring legislative session and haven’t gotten much closer to passing a bill – let alone one that doesn’t stomp all over the law passed by voters. Recently, we saw a bill that looked to restrict advertising in the industry, banning common advertising methods like TV and radio ads, billboards and more (unless the audience is guaranteed to be 70...

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