Taxing electricity raises little revenue but cuts use

Indoor marijuana operations use lots of electricity – for grow lights, ventilation, and so on.  Arcata, California, decided to tax extraordinarily high electricity use as a proxy for taxing marijuana directly – or as an environmental tax.  The tax applied only to users whose electricity bills were six times greater than a standard base.  It turns out that that tax has not produced much cash, but decimates extraordinarily high use of electricity.


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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