Maine’s weight-based marijuana taxes

Here are Maine’s marijuana producer tax rates, in addition to its 10 percent retail tax.  The Legislature overrode the price-based producer taxes that the voter initiative contained:

  • $335 per pound of marijuana flower or mature marijuana plants;
  • $94 per pound of marijuana trim;
  • $1.50 per immature marijuana plant or seedling; and
  • $0.30 per marijuana seed.




Weak correlation between THC concentration and cannabis price

I’m posting a table covering cannabis sales in Washington that was prepared by Ben Hansen, Keaton Miller, and Caroline Weber – academic economists out west, the first two authors at the University of Oregon, the last at the University of Washington.  They authorized me to share it.  Click here:  table_for_pat_oglesby

The table shows only a small correlation, 0.188, between (reported or claimed) THC concentration and price per gram, so it seems to chip away at the claim that a price tax base is a pretty good proxy for a THC tax.

Meanwhile, weight taxes are proliferating.  California’s tax for flower is $9.25 per ounce, for leaves or trim, it’s $2.75.  AK, NV, CO, and now ME also have multiple categories of product that bear different weight based taxes.  Those weight-based taxes may well correlate with potency better than price-based taxes do.


Current state marijuana taxes

 Current mj taxes with MI 3 columns big font 
Note the bolding for medical.

This chart reflects legalization in Michigan on Election Day 2018.   Recreational is taxed at 10 percent at retail;  there was no change in taxation of medical, taxed at 3 percent if sold at a dispensary, but exempt if sold by a caregiver.  All cannabis, recreational and medical, is subject to the state’s standard 6 percent sales tax.