C.A.R.E.
Picture
  • About CARE
    • Contact
    • C.A.R.E. Giver
    • Volunteer
    • VIP Invitations
  • The State of Cannabis 2018
  • Visual History of CARE
  • Bo

11/1/2017

California to tax pot as much as 45%

0 Comments

Read Now
 
Picture
by Aaron Smith   @AaronSmithCNNOctober 31, 2017: 2:24 PM ET

Buying legal marijuana in California could be pricey enough to keep the black market healthy.Between customers, retailers and growers, taxes on cannabis may reach as high as 45% in parts of the state, according to a Fitch Ratings report. Those high taxes may keep consumers away from legal marijuana stores once the recreational retail market goes live on January 1.
"High effective tax rates on California cannabis may complicate the state's efforts to establish legal markets" said analysts Stephen Walsh and Karen Ribble in a Fitch Ratings report on California's marijuana taxes.
California marijuana consumers are going to have to pay a combination of state and local taxes that vary by municipality. Growers and sellers have their own taxes, too.
Consumers will pay a sales tax ranging from 22.25% to 24.25%, which includes the state excise tax of 15%, and additional state and local sales taxes ranging from 7.25% to 9.25%.
Local businesses will have to pay a tax ranging from 1% to 20% of gross receipts, or $1 to $50 per square foot of marijuana plants, according to the Fitch report.
In addition, farmers will be taxed $9.25 per ounce for flower, and $2.75 per ounce for leaves.
The Fitch report says this combination of state and local taxes for consumers, retailers and growers could keep portions of California's cannabis industry off the grid, where it has flourished for some time.
"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," said the Fitch report.
Among the eight states where recreational marijuana is legal, only Washington has a higher tax rate at about 50%.
Colorado and Nevada both follow with rates of 36%. Oregon has a tax rate of 20% and Alaska has a rate of up to 20%.
Medical marijuana has been legal in California since 1996, but the retail markets for recreational marijuana are just now ramping up and are scheduled to begin on New Year's Day.
Read more here.

Share

0 Comments



Leave a Reply.

Details
    Picture

      ​Get VIP invites

    Subscribe to Newsletter

    Author

    Susan Soares has written for Cannabis Now Magazine, Alternet, and Sensi Magazine. 

    Archives

    June 2018
    January 2018
    December 2017
    November 2017
    October 2017
    August 2017
    July 2017
    June 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    October 2015
    September 2015
    May 2015
    January 2015
    October 2014
    May 2014
    April 2014
    February 2014
    January 2014

    RSS Feed

  • About CARE
    • Contact
    • C.A.R.E. Giver
    • Volunteer
    • VIP Invitations
  • The State of Cannabis 2018
  • Visual History of CARE
  • Bo