Cannabis Based Taxes. Which taxation is dominating?

What is happening? 14 of 18 states that tax legalized cannabis use a price based tax. Alaska, Maine and New Jersey tax cannabis based on weight. Connecticut, Illinois and New York, which also tax based on price, also have a potency level tax. The potency tax is like they tax their alcohol where beer has a lower tax rate than vodka.

Why is this important? Some tax experts say a weight based tax will weather market volatility more. As we’ve talked about around here, cannabis weathered COVID pandemic exceptionally well.

Maryland Matters | Pondering options, Md. lawmakers learn that taxation on cannabis varies from state to state