Massachusetts Legal Pot Measure Includes Lower Marijuana Taxes Than Most Other States

[Katelyn Baker]

Boston - Five states, including Massachusetts, are voting this November on plans to legalize marijuana. Almost all of those plans would tax the drugs at significantly lower rates than are being used in the three states where it is already legalized.

Colorado, Oregon and Washington already have legal recreational marijuana industries. Their tax schemes range from 25-37 percent.

Of the five states voting on recreational marijuana on Nov. 8, California's taxes would be the highest. The plan under that state's Proposition 64 calls for a 15 percent sales tax and additional cultivation taxes charged by the ounce.

Maine's tax plan would be the lowest in the nation, if approved. Question 1 calls for a 10 percent tax on marijuana sales.

Massachusetts' measure would create a tax rate of up to 12 percent, the second lowest proposal.

Approval of Question 4 would apply state sales tax and a 3.75 percent excise tax to marijuana. Local municipalities would also be allowed to add another 2 percent tax.

Here is a summary of recreational marijuana tax plans under ballot measures:

1. Arizona - Marijuana sales under Proposition 205 would carry a 15 percent sales tax
2. California - Proposition 64 would legalize marijuana sales with a 15 percent sales tax and cultivation taxes of $9.25 per ounce for flowers and $2.75 per ounce for leaves.
3. Maine - Question 1 includes a 10 percent sales tax on retail marijuana and marijuana products.
4. Massachusetts - Question 4 would apply state sales tax and 3.75 percent excise tax to marijuana sales. Local municipalities would also be allowed to add another 2 percent tax, effectively creating a tax rate of up to 12 percent.
5. Nevada - Question 2 creates a 15 percent excise tax on cultivation facilities and imposes annual licensing fees of between $3,300-$30,000, depending on the type of license.

Here is a summary of pot taxes in states where recreational marijuana is already legal:

1. Colorado - Taxes include the 2.9 percent retail and medical marijuana sales tax, 10 percent retail marijuana special sales tax, 15 percent marijuana excise tax and retail/medical marijuana application and license fees.
2. Oregon - As of 2016, recreational marijuana is taxed at 25 percent.
3. Washington - As of 2015, Washington state combined all taxes to a 37 percent tax at the point of sale.

News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Massachusetts Legal Pot Measure Includes Lower Marijuana Taxes Than Most Other States
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