How is bud-trim line working in California?

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?

Rose Habib on the Bud-Trim Line

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

Expert: Bud-Trim Line

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

Can the bud-trim line hold?

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?

Nevada’s 70-cent per gram tax on marijuana flower

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 marijuana taxes keep dropping

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

Tax Foundation overlooks Colorado’s de facto per-gram marijuana tax

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

Marijuna tax rates in Oregon and Alaska

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