The Center Square writes……
(The Center Square) – With state legislatures grappling with budget shortfalls in the next fiscal year, they are faced with cutting spending, increasing borrowing, and increasing taxes as options to fill significant gaps.
One excise tax increase that some legislatures are considering is on the sale of marijuana, which according to a new analysis by the Tax Foundation, should not be relied on as a long-term budget fix.
To date, nine states have legalized and tax recreational marijuana. Taxes can be based on a percentage of the retail or wholesale price, on weight per ounce, on the THC level, or as a combination of all three, according to the Brooking Institution’s Tax Policy Center.