How will the Ohio Government collect taxes on wholesale Cannabis?

[Weekender]

Just wondering how the Government of Ohio will collect its 10% tax on Cannabis in all of its forms. Do the dispensary's pay 10% on their purchase price or just additional sales tax on cash registers receipts from the day of sales, or both.

 

[SmokingWings]

Just wondering how the Government of Ohio will collect its 10% tax on Cannabis in all of its forms. Do the dispensary's pay 10% on their purchase price or just additional sales tax on cash registers receipts from the day of sales, or both.

Good question.n Spent a little bit of time looking at several articles and Ohio govt web sites trying to figure it all out. If I understand the way Ohio is doing it the 10% will be collected at the time of the retail sale along with the state and local taxes.

 

[Weekender]

Asking as I was in Sales in the Tobacco Industry for over 30 years in many states. Each state handles taxes differently but all collect the taxes prior to the product going to retail no tobacco escapes this tax both Federal and State. How is it being collected at medical dispensary's now in Ohio. We still use tax stamps here in Ohio, every pack of cigarettes has one. If they collect the tax at the time of the wholesale sale, that will pretty much secure the retail price and hold pricing up at the states suggested retail price. I think the state will try to be dominate in this issue. Lots and lots of room for issues to surface using self-reporting for taxes. In Ohio we also have state minimum pricing laws, on beer, wine and liquor as well as cigarettes. So I will imagine the state will enact a minimum pricing law for cannabis. With retailers not breaking this law on a regular basis, it ensures the retailers profits. Like in Ohio a retailer cannot price a bottle of wine for under 33% mark up from their wholesaler. The big chains cannot run sales on these products as their loss leader in the weekly ad to bring in more customers. So I see some forms of all the above being enacted.

 

[SmokingWings]

Asking as I was in Sales in the Tobacco Industry for over 30 years in many states. Each state handles taxes differently but all collect the taxes prior to the product going to retail....

I have to believe that those taxes being paid by the store/dispensary will be tacked on the price the customer sees for the weed or whatever product they want to purchase. Just like the money the business has to pay for licenses and permits, lights, phones, heating and cooling, rent, insurance, wages, and more are part of the costs of doing business and are all rolled into the "retail price".

Any taxes that are point of sale are meant to be paid by the customer and I expect that they are listed on the receipt.