Marijuana tax indexed: Maryland bill gets it

Delegate Curt Anderson’s Maryland House Bill 1453 to legalize marijuana imposes a $50 per ounce tax on sales to retailers, and then goes on to include as tax: “An amount that the comptroller may set that adjusts the initial $50 per ounce rate for inflation or deflation based on the consumer price index.”

Indexing is essential to making a quantity-based (as opposed to price-based) tax work in the long run.  So the Maryland proposal represents an advance over  the $50 per ounce tax – unindexed – in California Representative Tom Ammiano’s 2009 AB 390,


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