About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

1 Ulrik Boesen, A Road Map to Recreational Marijuana Taxation 1 (2020)

handle is hein.taxfoundation/tfrdmpr0001 and id is 1 raw text is: 



A Road Map to Recreational

Marijuana Taxation


FISCAL
FACT
No. 713
June  2020


The Tax Foundation is the nation's
leading independent tax policy
research organization. Since 1937,
our research, analysis, and experts
have informed smarter tax policy
at the federal, state, and global
levels. We are a 501(c(3) nonproft
organization.
©2020 Tax Foundation
Distributed under
Creative Commons CC-BY-NC 4.0
Editor, Rachel Shuster
Designer, Dan Carvajal
Tax Foundation
1325 G Street, NW, Suite 950
Washington, DC 20005
202.464.6200
taxfoundation.org


Ulrik Boesen
Senior Policy Analyst, Excise Taxes


Key   Points:

     Legal recreational marijuana sales are ongoing in nine states, covering 27
      percent of the U.S. population. In 2018, 10.5 percent of adult Americans had
      used marijuana products  in the last 30 days.

     States have designed different excise tax systems for recreational marijuana.
      While most  tax based on price, states also tax marijuana based on weight or
      THC  content.

     An excise tax on recreational marijuana should target the externality and raise
      sufficient revenue to fund marijuana-related spending while simultaneously
      outcompeting  illicit operators. Excise taxes should not be implemented in an
      effort to raise general fund revenue.

     Changes  to federal law would have implications for the tax revenue in states
      with legalized marijuana. If businesses had better access to banking, federal
      tax deductions, or interstate trading, prices would most likely fall.

     High taxes may  limit adoption by minors and non-users but could hurt the
      competitiveness  of the legal market. Low taxes may allow easy conversion
      from the illicit market but could increase consumption among non-users and
      minors. Taxing by price may not be stable, taxing by weight could encourage
      use of high potency products, and taxing by potency could complicate tax
      collection and add significant costs to both tax collectors and industry.

     A potency- and  weight-based tax defined by THC  levels may be the best
      short-term solution for lawmakers assuming  that THC is an appropriate proxy
      for the externalities associated with consuming marijuana.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing nearly 3,000 academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most