Month: July 2019

This is PRELIMINARY look at revenue from the Marijuana Opportunity Reinvestment and Expungement Act, or MORE Act.  Comments welcomed. UPDATES will appear at the top here.

The bill calls for a token 5 percent ad valorem tax on recreational marijuana only, with medical cannabis exempted.  It then purports to spend the money that tax brings in.  But Oops.  At the same time, but by descheduling the drug, the bill repeals the current 280E rule disallowing deductions for the expenses of selling cannabis.

Here’s what Carl Davis of ITEP authorized me to post:

“This bill sure looks like a net tax cut to me. Continue reading “Phony tax increase in Harris-Nadler Marijuana Bill”

Eventually, sampling error, deliberate or unavoidable, the killer problem with a THC tax on unprocessed marijuana, could fade as science and technology advance. Sampling could yield to full disclosure if science can reveal the precise chemical make-up of every gram we want to tax.  That precision may seem far-fetched, but perhaps no more than X-rays, MRIs, and astronomical spectroscopy — figuring out what is in stars — might have seemed to our ancestors, not so long ago.  One day, if a device can scan a flower and reveal all, THC taxation may seem unobjectionable.

THC taxation is unobjectionable now, or soon, for homogeneous concentrates.