A fair argument against weight-based taxes on raw marijuana plant material is that different parts of the plant need different tax rates. So categories are needed. A particularly difficult line to draw may be that between bud (flower) and trim (leaves). That topic has been covered here, in a link below in my message to … Continue reading How is bud-trim line working in California?
Colorado now has seven categories of marijuana to weigh in its de facto weight-based marijuana tax. Wet bud and wet trim are to have different tax rates per gram than dry bud and dry trim. And there are completely new categories of wet and dry “whole plant” Here’s the language: (22) “Wet” refers to Retail … Continue reading Beyond Bud-Trim
Rosemary Habib is the author, along with Reuben Finighan and Steven Davenport, of “Testing for Psychoactive Agents,” BOTEC Analysis Corp., http://liq.wa.gov/publications/Marijuana/BOTEC%20reports/1c-Testing-for-Psychoactive-Agents-Final.pdf (Aug. 24, 2013), which seems to me by far the leading analysis of that topic done to date. She graciously agreed to let me print her thoughts about the bud-trim line for a marijuana tax. … Continue reading Rose Habib on the Bud-Trim Line
Several posts here have looked at whether taxing bud at one rate and trim at another is viable. One argument that the line is self-enforcing, as bud is smoked and trim made into concentrates. But even without a tax incentive to put bud in the trim pile, businesses do just that. Here is an ad, … Continue reading Bud-trim line, continued
Question: Updating https://newrevenue.org/2014/05/12/can-the-bud-trim-line-hold/: Let’s say there’s a huge tax on bud and a small tax on trim. Would that give producers an incentive to cheat – to shift bud, at the margin, just a little, into the trim category and then use it to make concentrates? Might not a tax-evader deliberately characterize bud as … Continue reading Expert: Bud-Trim Line
Fascinating Update at https://newrevenue.org/2014/09/22/rose-habib-on-the-bud-trim-line/ — sophisticated analysis from an industry expert, who knows far more than I. Context: Colorado is de facto imposing wholesale per-gram marijuana taxes: 62 cents for potent bud, or flowers, and 10 cents for less valuable trim, or leaves. New Approach Oregon’s prominent 2014 initiative would tax bud at $1.23 a gram, trim at … Continue reading Can the bud-trim line hold?
“It would be impractical to try to establish legally enforceable standards of how well trimmed a bud can be before it is no longer legally a bud.” That’s from After Legalization, by Jon Walker of Firedog Lake. Phil Smith calls the book “in-depth, thoughtful, and insightful.” Here are the stakes: In states that draw a … Continue reading Bud-Trim Line
The tax on marijuana bud or “flower” in Alaska is $50 an ounce. Regulators there are considering cutting the tax to $25 for “immature flower” that appears “loose” or “wispy.” My reaction is: No! Please don’t! Unforced error! “Loose” and “wispy”? Who’s to say?
Nevada taxes marijuana like Colorado, with a de facto weight tax (and a percentage-based retail tax). Alaska taxes only by weight. So three of the five states collecting marijuana taxes now are doing so by weighing every gram (Washington and Oregon tax only by percentage of retail price). UPDATE: California taxes by weight, too; MA … Continue reading Nevada’s 70-cent per gram tax on marijuana flower
Colorado’s marijuana producer tax has hit an all-time historically low rate of 43 cents per gram on flowers (bud). For vertically integrated companies, that 43-cent rate is arrived at by taking the statutory tax rate of 15 percent and multiplying it by per-gram Average Market Rates (AMRs) – market prices. So the nominal percentage-of-price tax … Continue reading Colorado marijuana taxes keep dropping
Colorado’s nominal tax rate of 15 percent now yields DE FACTO a historically low tax of 49 cents a gram on flowers or bud, and a steady rate of 17 cents a gram for trim or leaves.
The Tax Foundation says marijuana taxes not based on price are “untenable.” That’s wrong. Colorado has been merrily collecting millions on a de facto weight-based tax from Day 1 of legal marijuana sales. Here’s the full quote: “Because marijuana can be purchased as a cigarette, an edible, a liquid, or a vapor, all with a … Continue reading Tax Foundation overlooks Colorado’s de facto per-gram marijuana tax
Colorado’s nominal tax rate of 15 percent now yields DE FACTO a historically low tax of 60 cents a gram on flowers or bud, and a historically high rate of 17 cents a gram for trim or leaves.
This is an October 30, 2014, update, of a mid-August post: Rates of $35 an ounce for potent flowers, $10 an ounce for less potent leaves, and $5 per immature plant: Those are the tax rates in Oregon’s Measure 91, which recently qualified for the November 2014 ballot. A reader asks: Are they too high? Are … Continue reading Marijuna tax rates in Oregon and Alaska
A tax is imposed upon the privilege of engaging in business as a marijuana producer at the rate of: (a) $35 per ounce on all marijuana flowers; (b) $10 per ounce on all marijuana leaves; and