Ganjapreneur
Alaska’s House of Representatives voted last week to replace the state’s $50-per-ounce tax structure on adult-use cannabis products with a 7% sales tax on retail cannabis transactions. The proposal still must pass the Senate before going to the governor.
Full story after the jump.
Under the original 2014 cannabis legalization law, Alaska’s cannabis industry currently pays a $50-per-ounce wholesale tax. The House-approved proposal would remove the wholesale tax and replace it with a 7% sales tax.
The tax changes are based on a 2022 task force analysis requested by Gov. Mike Dunleavy (R), which found the industry would benefit from a new tax system. The proposal originally called for just a 3% sales tax but the number was raised over concerns that the low tax rate would not be viewed favorably in the Senate, the report said. Lawmakers first adjusted the tax rate to 10% — then dropped it to 6% — before ultimately landing on a 7% sales tax on adult-use cannabis transactions in the state.
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