Technical tax comment on federal marijuana bill

Comment on the Cannabis Administration and Opportunity Act draft submitted to the Act’s authors:

I don’t understand what (B) is doing in new 26 U.S.C. 5902(a)(2).  


The term ‘THC-measurable cannabis product’ means any cannabis product—

‘‘(A) with respect to which the Secretary has made a determination that the amount of tetrahydrocannabinol in such product (or any particular category of products which includes such product) can be measured with a reasonable degree of accuracy—

 ‘‘(i) consistent with good commercial practice, and

 ‘‘(ii) sufficient to protect the revenue and the public, or

 ‘‘(B) which is not cannabis flower and the concentration of tetrahydrocannabinol in which
is significantly higher than the average such concentration in cannabis flower.


 If (A) is satisfied, OK, we know how to measure THC in this product.  Case closed.

If (A) is not satisfied, THC can’t be accurately measured, so at first blush, tax should not be calculated by THC.  

But maybe (B) taxes by THC content something where THC can’t be certifiably accurately measured.  I don’t understand.  (A) alone, without (B), seems to do the job.

(B) seems unnecessary and confusing.  What is (B) supposed to do?  I don’t know.

Thank you.


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