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

This is an October 30, 2014, update, of a mid-August post:

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?  I’ll answer a different question.  Alaska has an advantage other western states is that its internal laws don’t freeze voter-passed tax laws.  Oregon’s law gives no advantage to voter-passed laws, and its 3/5 supermajority requirement for tax increases is less burdensome than some states’ rules.

How about those rates?  To beat around the bush, the three hardest words in the English, according to Think Like a Freak, provide my answer. (Digressing further, the authors of that book, and of Freakonomics, feature my friend and Center for New Revenue board member Joe Murphy here: http://freakonomics.com/2012/12/06/the-things-they-taught-me-full-transcript/.) « 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.

Marijuana Tax Options — slides for August 18 panel for tobacco tax officials

August 12, 2014 § Leave a comment

The Federation of Tax Administrators, http://www.taxadmin.org/fta/about/default.html, folks who administer and collect state taxes, are having me on a panel about marijuana taxes for their Tobacco Tax section, in Knoxville, August 18.  Final slides are at FINAL Oglesby FTA Tobacco section aug 18 noon slides for Knoxville.

Sin tax defined

August 1, 2014 § Leave a comment

A sin tax is “a sumptuary tax specifically enforced on a good which is addictive, self-destructive, and socially undesirable while raising revenue for pro-social activities.”  http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2461189

Helping “deserters” is patriotic?

July 24, 2014 § Leave a comment

My old friend and former Joint Committee on Taxation Foreign Team colleague Patrick Driessen, no longer on staff, emails:

“I just congratulated a former JCT attorney for assisting on an inversion.  I told him that, notwithstanding what Secretary Lew just said, anybody helping to complete an inversion IS being a real patriot, on the theory that If we only have 10 more inversions this year, then we get something like the Levin bill which is at best a 7874 bandaid.  But if we get 25 more inversions this year, people will start looking at formulary and tell the lawyers to find a new sacred cow — other than transfer pricing, and with 50 more inversions this year, we get what I really want, which is to abolish the corporate tax, raise the individual income tax rates at the top, put in a VAT with a demogrant, and tighten the estate and gift tax (including policing the many phony self-glorifying foundations out there).  « Read the rest of this entry »

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