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Neighborhood cannabis taxes are typically topped by the state and also set between 2 percent as well as 5 percent. The percentage-of-price tax obligation is the most popular tax obligation on marijuana.

Tax computations vary across these states, however in every state the grower (i. e., cannabis cultivator) is accountable for remitting the tax to the government, and in every state but New Jersey different parts of the plant are taxed at various rates (e.

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Potency-based. A potency-based tax obligation is computed based on the cannabis product's degree of tetrahydrocannabinol (THC), the main psychedelic compound in cannabis (dispensary denver).


Local governments can additionally levy an excise tax obligation on cannabissome levy a percentage-of-price tax obligation and others impose a weight-based tax. Legal sales started in October 2016.: The state levies a 16 percent excise tax obligation on cannabis sales that is paid by customers and also paid by sellers. There are no local marijuana taxes in Arizona.


: The state imposes a 15 percent excise tax on marijuana sales that is paid by consumers and also remitted by stores. California' state federal government previously additionally levied a weight-based tax obligation, however that tax obligation was reversed in 2022. Local federal governments in California can likewise impose an excise tax on marijuana companies.

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The latter tax can be applied on the grower, representative, and the merchant, which suggests the tax concern on the client is possibly well above the provided tax obligation price. Lawful sales started in January 2018.: The state levies both a 15 percent excise tax on cannabis sales (paid by consumers and remitted by sellers) as well as a weight-based tax obligation (paid as well as paid by farmers).

Local governments can likewise impose a percentage-of-price excise tax obligation on marijuana. The region tax obligation is covered at 3 percent when there is additionally a metropolitan tax obligation on the acquisition.



Legal sales began in October 2018 but the state did not start accumulating marijuana tax obligation profits up until November 2020.: Maryland voters approved recreational cannabis in November 2022. The tally action did not have a marijuana tax obligation, yet rather instructed the legislature to create one. As of April 2023, legal cannabis sales had actually not yet started in Maryland.

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75 percent excise tax on marijuana sales that is paid by consumers as well as remitted by sellers. City governments are additionally enabled to levy as much as a 3 percent tax obligation on the retail rate. Lawful sales began in November 2018.: The state levies a 10 percent excise tax obligation on marijuana sales that is paid by consumers wikipedia reference and also remitted by retailers.


: The state imposes a 20 percent excise tax obligation on cannabis sales that is paid by customers as well as remitted by sellers. City governments are also allowed to impose up to a 3 percent tax on the retail cost. Lawful sales began in January 2022.: The state levies both a 10 percent excise tax on marijuana sales (paid by consumers and remitted by stores) as well as a weight-based tax obligation (paid and paid by growers).

Because this tax is levied on multiple businesses in the supply chain (farmer, distributor, and merchant), the tax obligation burden can "pyramid" to make sure that the actual tax paid by the consumer is greater than the provided 2 percent rate. Lawful sales started in April 2022.: The state imposes a 12 percent excise tax on cannabis sales that is paid by customers and remitted by merchants (dispensary denver).

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Lawful sales began in April 2022.: There is both a 13 percent excise tax obligation (9 percent state as well as 4 percent local) on cannabis sales (paid by customers and also remitted by store) and a potency-based tax obligation (paid by distributors) in New York. The potency-based tax obligation is a per unit tax obligation: 0.

: The state imposes a 10 percent excise tax obligation on marijuana sales that is paid by customers and also remitted by sellers. City governments are additionally enabled to levy up to a 3 percent tax on the list price. Lawful sales started in November 2022.: The state imposes a 14 percent excise tax on marijuana sales that is paid by consumers and paid by sellers.

Legal sales started in October check out this site 2022.: The state established a 21 percent excise tax obligation on marijuana sales that is paid by customers and also remitted by retailers. City governments will certainly also be enabled to levy as much as a 3 percent tax obligation on the list price. Since April 2023, lawful marijuana sales had actually not yet begun in Virginia.

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Some states commit cannabis tax revenue to conventional content federal government programs. As an example, Arizona invests one-third of its income on community universities, Colorado invests every one of its revenue on public institution construction, Michigan makes use of a bulk of its revenue for K-12 public schools and roadway fixing and upkeep, and Washington invests fifty percent of its earnings on health and wellness treatment programs.

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