GRASS NOT SO GREEN

The Washington Times Weekly - - Politics -

“Be­tween cus­tomers, re­tail­ers and grow­ers, taxes on cannabis may reach as high as 45 per­cent 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,” writes CNN Money colum­nist Aaron Smith.

Cannabis con­sumers will pay a sales tax rang­ing from 22.25 per­cent to 24.25 per­cent, made up of a com­bi­na­tion of state ex­cise tax plus some ad­di­tional state and lo­cal sales taxes. Lo­cal businesses will have to pay a tax rang­ing from 1 per­cent to 20 per­cent of gross re­ceipts — or $1 to $50 per square foot of mar­i­juana plants that they grow.

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,” Mr. Smith ob­serves.

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