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State THC tax rates vary from 6 percent in Missouri to 37 percent in Washington. Local marijuana tax obligations are typically topped by the state and collection in between 2 percent as well as 5 percent. The percentage-of-price tax is one of the most preferred tax on THC. 10 states only use this type of tax obligation and 5 states utilize it along with one more tax obligation.

Alaska, Colorado, Maine, Nevada, and also New Jacket utilize a weight-based THC tax. Tax obligation computations differ across these states, however in every state the farmer (i. e., THC grower) is accountable for paying the tax to the federal government, and also in every state yet New Jersey various components of the plant are taxed at different rates (e.

Potency-based. dispensary denver. A potency-based tax is determined based upon the marijuana item's degree of tetrahydrocannabinol (THC), the key psychoactive compound in marijuana. This sort of tax obligation about mirrors state alcohol taxes where higher tax rates are related to items containing a higher concentration of alcohol (i. e., a state's per gallon alcohol tax rate is higher on alcohol than red wine as well as higher on a glass of wine than beer).


City governments can also impose an excise tax on THCsome levy a percentage-of-price tax obligation as well as others levy a weight-based tax obligation. Legal sales started in October 2016.: The state levies a 16 percent excise tax obligation on marijuana sales that is paid by consumers as well as remitted by stores. There are no regional marijuana taxes in Arizona.


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

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The latter tax can be used on the farmer, distributor, and the merchant, which suggests the tax obligation burden on the customer is potentially well above the provided tax obligation price. Lawful sales began in January 2018.: The state levies both a 15 percent excise tax on THC sales (paid by consumers as well as remitted by sellers) as well as a weight-based tax obligation (paid and remitted by cultivators).

Neighborhood federal governments can additionally impose a percentage-of-price excise tax obligation on marijuana. The area tax obligation is covered at 3 percent when there is additionally a municipal tax obligation on the acquisition.

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Legal sales started in October 2018 yet the state did not start gathering THC tax earnings till November 2020.: Maryland citizens authorized leisure THC in November 2022. The tally action did not consist of a THC tax obligation, but rather instructed the legislature to create one. Since April 2023, lawful THC sales had actually not yet started in Maryland.

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75 percent excise tax obligation on THC sales that is paid by customers as well as paid by merchants. City governments are likewise allowed to impose as much as a 3 percent tax obligation on the retail cost. Lawful sales began in November 2018.: The state imposes a 10 percent excise tax on THC sales that is paid by customers and also remitted by retailers.


: The state imposes a 20 percent excise tax on marijuana sales that is paid by customers and remitted by merchants. City governments are likewise enabled to impose as much as a 3 percent tax obligation on the market price. Legal sales began in January 2022.: The state levies click now both a 10 percent excise tax on THC sales (paid by consumers as well as paid by stores) and a weight-based tax (paid and remitted by growers).

Since this tax obligation is imposed on numerous companies in the supply chain (farmer, representative, and also store), the tax obligation burden can "pyramid" so that the actual tax paid by the customer is greater than the listed 2 percent rate. Legal sales began in April 2022.: The state imposes a 12 percent excise tax obligation on THC sales that is paid by customers and also paid by stores (dispensary denver).

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Legal sales began in April 2022.: There is both a 13 percent excise tax (9 percent state as well as 4 percent neighborhood) on marijuana sales (paid by customers as well as remitted by store) and also a potency-based tax (remitted by representatives) in New york city. The potency-based tax is an each tax: 0.

: The state imposes a 10 percent excise tax on THC sales that is paid by customers and paid by merchants. Regional governments are likewise allowed to impose as much as a 3 percent tax on the retail rate. Lawful sales began in November 2022.: The state imposes a 14 percent excise tax on marijuana sales that is paid by consumers and also remitted by retailers.

Lawful sales began in October 2022.: The state enacted a 21 percent excise tax obligation on THC sales that is paid by customers as well as remitted by merchants. City governments will certainly also be permitted to levy as much as a 3 percent tax on the market price. Since April 2023, legal THC sales had actually not yet begun in Virginia.

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Some states commit marijuana tax profits to traditional government programs. For instance, Arizona find out here now invests one-third of its earnings on community colleges, Colorado spends all of its profits on public school building, Michigan utilizes a majority of its income for K-12 public institutions as well as roadway fixing and maintenance, and Washington spends half of its income on wellness treatment programs.

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