Rose Habib on the Bud-Trim Line

September 22, 2014 § Leave a comment

Rosemary Habib is the author, along with Reuben Finighan and Steven Davenport, of “Testing for Psychoactive Agents,” BOTEC Analysis Corp., http://liq.wa.gov/publications/Marijuana/BOTEC%20reports/1c-Testing-for-Psychoactive-Agents-Final.pdf (Aug. 24, 2013), which seems to me by far the leading analysis of that topic done to date. She graciously agreed to let me print her thoughts about the bud-trim line for a marijuana tax.

My question:  

Updating http://newrevenue.org/2014/05/12/can-the-bud-trim-line-hold/:  Let’s say there’s a huge tax on bud and a small tax on trim.  Would that give producers an incentive to cheat – to shift bud, at the margin, just a little, into the trim category and then use it to make concentrates?

Might not a tax-evader deliberately characterize bud as trim to boost the THC content – and thus value – of concentrates?  That evasion depends on the purchaser believing that he is getting a better, more valuable product — edible, vaporizer cartridge, or whatever.  And that belief would need to come from THC labeling (however inaccurate) or some other claim or experience or report.

Rose Habib’s response:

My first impression is, yes it could be more economical to move lesser buds over into the trim pile.  A lot of that depends on the market.  « Read the rest of this entry »

Official CO document freezing average market rate

September 17, 2014 § Leave a comment

This document freezes producer marijuana taxes through the end of 2014: Average market rate late 2014.

NY bill: bud $50/oz.; concentrates $200/oz.

September 14, 2014 § Leave a comment

These bills sometimes disappear. Here is the text of New York State Senator Liz Krueger’s bill imposing “an excise tax of $50.00 per ounce on marihuana and $50.00 per quarter ounce of concentrated cannabis.”  http://open.nysenate.gov/legislation/bill/S6005-2013 Accessed 14 September, 2014.

BILL NUMBER:S6005 « Read the rest of this entry »

Bud-trim line, continued

September 14, 2014 § Leave a comment

Several posts here have looked at whether taxing bud at one rate and trim at another is viable.

One argument that the line is self-enforcing, as bud is smoked and trim made into concentrates.   But even without a tax incentive to put bud in the trim pile, businesses do just that.  Here is an ad, downloaded 14 September 2014, promising concentrates made from . . . ALL BUD NO TRIM! « Read the rest of this entry »

Colorado freezes marijuana tax rates

August 30, 2014 § Leave a comment

Colorado just avoided a 50-percent hike in the rate of tax on flowers or bud, from 62 cents a gram to 95 cents.  An administrative tax increase was squarely on the table, put there by a finding of fact by Colorado’s Marijuana Policy Group.  But the Department of Revenue rejected that finding and held rates steady.

« Read the rest of this entry »

Marijuna tax rates in Oregon and Alaska

August 14, 2014 § Leave a comment

Rates of $35 an ounce for potent flowers, $10 an ounce for less potent leaves, and $5 per immature plant: Those are the tax rates in Oregon’s Measure 91, which recently qualified for the November 2014 ballot. A reader asks: Are they too high? Are they too low? And how about the rate of $50 per ounce, reducible by regulations for (presumably less potent) parts of the plant, in Alaska’s Ballot Measure 2?   To answer a different  question, the advantage that Oregon and Alaska have over other western states is that their internal laws don’t freeze voter-passed tax laws.  Oregon and Alaska can adjust to circumstances that no one can now envision — by changing tax rates as needed.

« Read the rest of this entry »

“Laws To Tax Marijuana,” 59 State Tax Notes 251-80 (January 24, 2011)

August 14, 2014 § Leave a comment

Laws To Tax Marijuana — published version in State Tax Notes is the official version, but State Tax Notes would not print a Table of Contents, which is available in Laws To Tax Marijuana — Manuscript with Table of Contents.

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