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.”  http://mgaleg.maryland.gov/2013RS/bills/hb/hb1453F.pdf

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, http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0351-0400/ab_390_bill_20090223_introduced.html.

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Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

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