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State marijuana tax prices range from 6 percent in Missouri to 37 percent in Washington. Neighborhood marijuana taxes are typically topped by the state and also set in between 2 percent and 5 percent. The percentage-of-price tax obligation is one of the most popular tax obligation on THC. Ten states solely use this kind of tax and also 5 states utilize it in addition to an additional tax.

Tax obligation calculations differ across these states, however in every state the grower (i. e., THC cultivator) is accountable for paying the tax obligation to the federal government, and also in every state however New Jersey various components of the plant are strained at different rates (e.

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Potency-based. A potency-based tax is computed based on the THC item's degree of tetrahydrocannabinol (THC), the primary psychoactive compound in THC.

Neighborhood federal governments can also levy an excise tax obligation on THCsome levy a percentage-of-price tax as well as others levy a weight-based tax. Legal sales started in October 2016.: The state levies a 16 percent excise tax obligation on THC sales that is paid by customers as well as remitted by retailers. There are no regional THC taxes in Arizona.

: The state levies a 15 percent excise tax obligation on marijuana sales that is paid by customers and remitted by merchants. California' state federal government formerly additionally levied a weight-based tax obligation, however that tax obligation was repealed in 2022. Local governments in California can likewise levy an excise tax obligation on marijuana businesses.

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The latter tax obligation can be used on the cultivator, supplier, and also the store, which means the tax concern on the consumer is possibly well above the provided tax obligation rate. Legal sales started in January 2018.: The state levies both a 15 percent excise tax on marijuana sales (paid by customers and paid by stores) and also a weight-based tax obligation (paid and remitted by farmers).

g., edibles) are strained at 20 percent of retail price. Regional governments can likewise impose a percentage-of-price excise tax obligation on THC. The local tax obligation rate is topped at 3 percent for communities and also 3. 75 percent for counties. Nevertheless, the county tax is capped at 3 percent when there is likewise a local tax on the purchase.

Legal sales started in October 2018 but the state did not start collecting marijuana tax income up until November 2020.: Maryland citizens accepted leisure THC in November 2022. The ballot measure did not contain a THC tax, however rather advised the legislature to develop one. As of April 2023, legal THC sales had not yet begun in Maryland.

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75 percent excise tax on marijuana sales that is paid by customers and paid by retailers. City governments are also allowed to levy as much as a 3 percent tax on the retail rate. Lawful sales started in November 2018.: The state imposes a 10 percent excise tax obligation on THC sales that is paid by customers and also paid by retailers.

: The state imposes a 20 percent excise tax obligation on THC sales that is paid by consumers as well as paid by sellers. Local federal governments are likewise permitted to levy as much as a 3 percent tax obligation on the list price. Lawful sales started in January 2022.: The state levies both a 10 percent excise tax on THC sales (paid by customers and also remitted by sellers) and also a weight-based tax obligation (paid and paid by growers).

Due to the fact that this tax is imposed on multiple businesses in the supply chain (farmer, distributor, as well as seller), the tax obligation concern can "pyramid" so that the actual tax paid by the customer is higher than the detailed 2 percent rate. Lawful sales started in April 2022.: The state imposes a 12 percent excise tax obligation on marijuana sales that is paid by consumers as well as paid by merchants.

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Lawful sales began in April 2022.: There is both a 13 percent excise tax obligation (9 percent state and 4 percent regional) on marijuana sales (paid by customers and also paid by store) and a potency-based tax obligation (remitted by suppliers) in New york city. The potency-based tax obligation is an each tax obligation: 0.

: The state levies a 10 percent excise tax obligation on THC sales that is paid by consumers as well as remitted by merchants. Regional federal governments are likewise permitted to levy read review as much as a i was reading this 3 percent tax on the market price. Legal sales started in November 2022.: The state levies a 14 percent excise tax obligation on marijuana sales that is paid by customers as well as remitted by merchants.

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Legal sales started in October 2022.: The state passed a 21 percent excise tax obligation on THC sales that is paid by consumers as well as remitted by sellers. Local federal governments will certainly additionally be allowed to levy approximately a 3 percent tax on the list price. Since April 2023, lawful THC sales had not yet begun in Virginia.

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Some states dedicate marijuana tax obligation earnings to traditional federal government programs. As an example, Arizona spends one-third of its revenue on pop over to this site area colleges, Colorado invests all of its income on public institution building, Michigan utilizes a bulk of its profits for K-12 public institutions and road repair service and also upkeep, and Washington invests half of its income on healthcare programs.

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