Taxing Marijuana: Dabs and Edibles

Price, weight, potency:  Those are the leading options for a tax base for marijuana.

Potency won’t work for taxing plant material (smokable marijuana), because it’s not fungible (homogeneous) enough to yield replicable test results.  Accuracy within 10 or 20 percent is not “close enough for government work.”  If my W-2 or 1099 IRS form is 20 percent too low, I’ll be smiling;  if it’s 20 percent too high, I’ll be trying to figure out how to appeal — or how to find a different measurer (the analog of testing lab) next time.

But “concentrated cannabis oils, known in various states as ‘butter’, ‘shatter’, ‘wax’, and ‘BHO’” – are fungible enough to yield replicable THC results – close enough for government work, indeed.

But then it turns out that concentrates have two uses:  for smoking and for edibles.  Smoking concentrates may be the most intoxicating form of consumption.  But when concentrates are incorporated into edibles, they lose potency.

There’s a dilemma.  If intoxication is the basis Continue reading Taxing Marijuana: Dabs and Edibles