It sounds like taxing jurisdictions are waking up to the shrewdness of keep marijuana taxes low at first, but not forever, as the industry matures. Monterey County, California, has been considering a plan to phase marijuana tax rates up:
“Developed with the help of consultant HdL and Associates, the tax would be phased in over a five-year period. For sales, the tax would start at 5 percent of gross receipts per fiscal year effective Jan. 1, and increasing 2.5 percent every fiscal year beginning July 1, 2020, to a maximum rate of 10 percent. For general cultivation, the tax rate would start at $15 per square foot of canopy, or growing area effective Jan. 1, and increase by $5 every fiscal year beginning July 1, 2020, to a maximum rate of $25 per square foot. Nursery cultivation involving only clones, immature plants, seeds and other agricultural products used for general cultivation, would be taxed at $2 per square foot of canopy up to a maximum of $5 per square foot.”
Here’s a less-detailed report of the approval for the ballot:
“The proposal calls for a sales tax starting at 5 percent and increasing by 2020 to a maximum 10 percent rate, and taxing cultivation at a starting rate of $15 per square foot of “canopy” or growing area and increasing to a maximum of $25 per square foot.”
Another report indicates that Salinas voters will get a chance to approve low early rates, which elected officials can apparently raise without another vote.
Note that these are all taxes that would apply to medical marijuana.